BP has announced its decision to sell 20 percent of Rosneft’s controversial stake, which was made public by the oil company on Sunday.
The move was made public today by Bernard Looney (chief executive), who said that he felt’saddened’ as well as’shocked” at Russia’s invasion of Ukraine.
It comes after he was summoned to a meeting with Business Secretary Kwasi Kwarteng on Friday amid growing unease about BP’s Russian dealings.
As images of the Ukraine continue to stir anger, politicians and business leaders are under increasing pressure to end all ties to Vladimir Putin’s government.
Rosneft board member Mr Looney also resigned today. He said: “I am deeply shocked by what is happening in Ukraine…
Bernard Looney (pictured), chief executive, revealed his decision today. He stated that he was shocked and saddened by Russia’s invasion of Ukraine.
“Our immediate concern is the care of our wonderful people in the area ….and looking into how BP might support the larger humanitarian effort.”
Looney stated, “My heart is with everyone who has been affected.”
“It caused us to fundamentally rethink BP’s position with Rosneft.
‘I’m convinced the decisions that we made as a board were not only right but also in the long-term interest of BP.
Helge Lud, chair of BP, stated that although the company has been in Russia since more than thirty years and had ‘brilliant Russian colleagues,’ the invasion was a significant change.
He stated that Russia’s aggression on Ukraine was an act of aggression with tragic results for the entire region.
BP’s Russian operations have been ongoing for more than 30 years. We work with great Russian colleagues.
“But, this military action is a fundamental shift.
“It caused the BP board after a thorough process to determine that our involvement Rosneft, a State-owned Enterprise, cannot continue.
BP officials who are currently on Rosneft boards cannot be supported.
BP has decided to sell its Rosneft shareholding.
“The BP board considers these decisions to be in the long-term best interests of all shareholders.”
Rosneft – which is backed by the Kremlin – is providing fuel to Russia’s troops as they wage war on neighbouring Ukraine.
Sources familiar with the situation said Looney left Friday’s meeting feeling confident about his concern for Russia’s commercial interests.
Today Mr Kwarteng declared: “I appreciate BP’s decision in Rosneft to leave its shareholding.
British businessmen with Russian commercial interests must wake up to Russia’s unprovoked invasion of Ukraine.
BP owned a 19.75 percent stake in Rosneft. Looney sat alongside Rosneft chief Executive Igor Sechin who is a close ally to Putin.
Under pressure: BP chief executive Bernard Looney was called to a meeting by Kwasi Kwarteng, Business Secretary.
Gerhard Schroder is also a Rosneft chairman. He was the ex-Chancellor of Germany and former boss at BP Bob Dudley.
They have been criticized fiercely, while BP was urged to sell its Rosneft stake.
Looney earlier in the month stated that BP has done well worldwide by its strategy to ‘avoid politics’.
He said that the company would adhere to any sanctions related to Ukraine.
Rosneftegaz is the largest shareholder of Rosneft, accounting for 40.4 percent. BP follows closely.