Well, this is big news.
BP has just issued a press release saying it’s quitting Russia, where it has been operating for three decades, with its first office in Moscow opening in 1990.
BP is ending its 19.75 per cent shareholding in Russia’s Rosneft, which it has held since 2013.
BP chief Bernard Looney.Credit:Bloomberg
Two of BP’s directors, BP CEO Bernard Looney and former group executive Bob Dudley will quit Rosneft’s board immediately.
“Russia’s attack on Ukraine is an act of aggression which is having tragic consequences across the region,” Chair Helge Lund said.
“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.”
While Rosneft is not sanctioned, BP’s hasty exit may suggest the effect of sanctions elsewhere, specifically in terms of SWIFT – the international payments system – as BP conducts its sales via US banks.
CEO Looney said BP was looking at how it can support the wider humanitarian effort.
“Like so many, I have been deeply shocked and saddened by the situation unfolding in Ukraine and my heart goes out to everyone affected,” he said.
“Our immediate priority is caring for our great people in the region and we will do our utmost to support them.”
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