Energy giant BP is to exit its shareholding in Russian joint venture Rosneft in response to the Ukraine crisis.
BP has held a 19.75% shareholding in Rosneft since 2013.
In addition, BP chief executive Bernard Looney is resigning from the board of Rosneft with immediate effect.
Former BP chief executive Bob Dudley is also resigning from Rosneft’s board.
Like so many, I have been deeply shocked and saddened by the situation unfolding in Ukraine. It has caused us to fundamentally rethink BP’s position with Rosneft.”
Bernard Looney, chief executive, BP.
Helge Lund, chairman, BP, said: “Russia’s attack on Ukraine is an act of aggression which is having tragic consequences across the region.
“BP has operated in Russia for over 30 years, working with brilliant Russian colleagues.
“However, this military action represents a fundamental change.
“It has led the BP board to conclude, after a thorough process, that our involvement with Rosneft, a state-owned enterprise, simply cannot continue.
“We can no longer support BP representatives holding a role on the Rosneft board.
“The Rosneft holding is no longer aligned with BP’s business and strategy, and it is now the board’s decision to exit BPs’ shareholding in Rosneft.”
I welcome BP’s decision to exit its shareholding in Rosneft oil company.
Russia’s unprovoked invasion of Ukraine must be a wake up call for British businesses with commercial interests in Putin’s Russia.
— Kwasi Kwarteng (@KwasiKwarteng) February 27, 2022
Mr Looney added: “Like so many, I have been deeply shocked and saddened by the situation unfolding in Ukraine, and my heart goes out to everyone affected.
“It has caused us to fundamentally rethink BP’s position with Rosneft.
“I am convinced the decisions we have taken as a board are not only the right thing to do, but are also in the long-term interests of BP.
“Our immediate priority is caring for our great people in the region and we will do our utmost to support them.
“We are also looking at how BP can support the wider humanitarian effort.”
Mr Looney has been a director of Rosneft as one of two BP-nominated directors since 2020. Mr Dudley has been a director of Rosneft since 2013.
BP will also exit its other businesses with Rosneft within Russia.
Mr Looney is separately resigning from the board of trustees of the Russian Geographical Society.
Business Secretary Kwasi Kwarteng welcomed BB’s decision, adding: “Russia’s unprovoked invasion of Ukraine must be a wake-up call for British businesses in Putin’s Russia.”
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