BP relinquishes disputed 20% stake in Russia’s energy group Rosneft and CEO resigns from company board after pressure from government
- CEO Bernard Looney says he is “deeply shocked” by the “situation in Ukraine”
- He promised that the oil giant would consider how it could “support a wider humanitarian effort”.
- The Kremlin-backed Rosneft provides vital fuel for warring Russian troops
BP is giving up its disputed 20 percent stake in Russia’s Rosneft “immediate effect” energy group, the oil giant said on Sunday.
CEO Bernard Looney revealed the move today, saying he was “sad” and “shocked” by Russia’s invasion of Ukraine.
This comes after he was summoned to a meeting with Business Secretary Kwasi Quarteng on Friday amid growing concerns about BP’s Russian deals.
There is growing pressure on politicians and business leaders to sever ties with the Vladimir Putin regime as images coming out of Ukraine, including bloodied civilians and destroyed buildings, continue to provoke anger among the British public.
Mr Luni said today: “I was deeply shocked and saddened by the situation unfolding in Ukraine …
CEO Bernard Looney (pictured) revealed the move today, saying he was “sad” and “shocked” by Russia’s invasion of Ukraine.
“Our immediate priority is to take care of our great people in the region … and see how BP can support the wider humanitarian effort.”
Helge Lund, chairman of BP, meanwhile, said that while the company had been working in Russia for more than 30 years with “brilliant Russian colleagues”, the invasion was a fundamental change.
He said: “Russia’s attack on Ukraine is an act of aggression that has tragic consequences throughout the region.
“BP has been working in Russia for more than 30 years, working with brilliant Russian colleagues.
“However, this military action is a fundamental change.
“This led the BP board to conclude after an in-depth trial that our involvement with Rosneft, a state-owned company, simply could not continue.
“We can no longer support BP representatives who have a role on the board of Rosneft.
“Rosneft’s holding is no longer in line with BP’s business and strategy, and now the board’s decision is to leave BP’s stake in Rosneft.
“BP’s Board of Directors believes that these decisions are in the best long-term interests of all our shareholders.”
Rosneft – backed by the Kremlin – is fueling Russian troops as they wage war with neighboring Ukraine.
A source familiar with the matter said Luni left Friday’s meeting “without a doubt about the strength of the business secretary’s concerns about their trade interests in Russia.”
BP boasted a 19.75 percent stake in Rosneft, and Luni sat on the company’s board with Rosneft CEO Igor Sechin, a close ally of Putin.
Pressure: BP CEO Bernard Looney was summoned to a meeting with Business Secretary Kwasi Kwarteng (pictured)
Also on board Rosneft are chairman Gerhard Schroeder, former German chancellor, and former BP boss Bob Dudley.
Their positions drew fierce criticism as BP was urged to drop its stake in Rosneft.
Earlier this month, Looney said BP’s strategy of “avoiding politics” has worked well for the company around the world.
However, he said the company would comply with all sanctions related to Ukraine.
The largest shareholder in Rosneft is the state-owned Rosneftegaz with 40.4 percent, followed by BP.
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