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BP mentioned Sunday it’s exiting its share in Rosneft, a state-controlled Russian oil and gasoline firm, in response to Russia’s invasion of Ukraine.
BP
BP,
BP,
has held a 19.75% stake in Rosneft since 2013. That stake is presently valued at $14 billion.
London-based BP additionally mentioned its CEO, Bernard Looney, and former BP govt Bob Dudley will instantly resign from Rosneft’s board.
“Like so many, I’ve been deeply shocked and saddened by the scenario unfolding in Ukraine and my coronary heart goes out to everybody affected. It has brought on us to essentially rethink BP’s place with Rosneft,” Looney mentioned in a press release.
BP Chairman Helge Lund mentioned BP has operated in Russia for greater than 30 years.
“Nevertheless, this navy motion represents a basic change,” Lund mentioned in a press release.
Kwasi Kwarteng, the U.Ok.’s secretary of state for enterprise and vitality, mentioned he welcomed BP’s determination.
“Russia’s unprovoked invasion of Ukraine should be a get up name for British companies with business pursuits in Putin’s Russia,” Kwarteng mentioned in a tweet.
BP mentioned it would take two non-cash costs within the first quarter to mirror the change, together with an $11 billion cost for international trade losses which have amassed since 2013.
Rosneft’s partnerships with Western oil and gasoline corporations have been stymied earlier than.
In 2011, Exxon Mobil
XOM,
led on the time by future U.S. Secretary of State Rex Tillerson, signed a cope with Rosneft to doubtlessly drill within the oil-rich Russian Arctic. However Exxon ended that partnership in 2017, citing U.S. and European sanctions in opposition to Russia.
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