BP sells its 20% stake in Rosfnet. The Chinese gloat

After days of intense pressure from the British government, British energy giant BP Plc said it will sell its 1 9.75% stake in the oil company to Russian Rosneft, a dramatic turnaround following the Russian invasion of Ukraine. . BP has held its stake in Rosneft since 2013. BP is Rosneft's largest private shareholder, according to the Russian company.

Additionally, BP CEO Bernard Looney will resign from the board of Rosneft with immediate effect. Similarly, the other BP-appointed director of Rosneft, former BP Group CEO Bob Dudley, will step down from the board.

BP President Helge Lund said: “ Russia's attack on Ukraine is an act of aggression that is having tragic consequences across the region. BP has been operating in Russia for over 30 years, working with brilliant Russian partners. However, this military action represents a fundamental change. It led the board of BP 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 who hold a role on the Rosneft board. Rosneft's holding is no longer aligned with bp's business and strategy and it is now the board's decision to exit BP's holding in Rosneft. BP's board believes these decisions are in the best long-term interest of all of our shareholders . "

BP CEO Bernard Looney added: “Like many, I have been deeply shocked and saddened by the situation unfolding in Ukraine and my heart goes out to all those affected. It caused us to fundamentally rethink BP's position with Rosneft. I am convinced that the decisions we have made as advice are not only the right thing to do, but are also in the long-term interest of bp. Our immediate priority is to take care of our great people in the region and we will do our best to support them. We are also examining how BP can support the wider humanitarian effort ”.

Bernard Looney is a director of Rosneft as one of two directors appointed by BP since 2020. Bob Dudley has been a director of Rosneft since 2013.

According to the Rosneft website, Putin chairs the board, which includes Looney as well as heads of Russian banks and other entities that have been subject to Western sanctions. The organization supports the arts and other cultural causes, according to the website, which states that administrators serve voluntarily.

In December 2021, Rosneft reported that BP is "the leading British investor in the Russian economy with a total investment of $ 18 billion". The figure fluctuates based on the value of Rosneft, which has been hammered by the Russia-Ukraine conflict and Western sanctions.

BP said the resignation will require BP to change the accounting treatment of its stake in Rosneft and, as a result, expects to report a substantial non-monetary charge with Q1 2022 results, to be reported in May. The company did not provide details, but said the book value of the business was $ 14 billion.

And with BP poised to unleash a sell-off in the already depressed stock, the next question, as Jim Pickard, chief political correspondent of the FT notes, is "who will be the buyer and at what price."

Here, all eyes are on Beijing, which will be happy to grab Russian goods at bargain prices.

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Item BP sells its 20% stake in Rosfnet. The Chinese gloat comes from ScenariEconomici.it .

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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/bp-vende-la-propria-partecipazione-del-20-in-rosfnet-i-cinesi-gongolano/ on Sun, 27 Feb 2022 19:50:35 +0000.