BP pulls out of Russian state oil and gas company Rosneft after Moscow’s decision to invade Ukraine.
bp’s board of directors said it will exit its 19.75 percent stake in Rosneft and that bp’s CEO, Bernard Looney, will step down from Rosneft’s board of directors with immediate effect. Former bp group chief executive Bob Dudley, will also resign from Rosneft’s board of directors.
In a statement, BP Chairman Helge Lund said: “The Russian attack on Ukraine is an act of aggression that has tragic consequences across the region. bp has been active 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 company, simply cannot continue. We can no longer support the bp representatives who play a role in Rosneft’s board. The Rosneft stake is no longer aligned with bp’s business and strategy and it is now the decision of the board of directors to terminate bp’s stake in Rosneft. The bp board of directors believes that these decisions are in the long-term interest of all our shareholders.”
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bp chief executive officer Bernard Looney added: “Like so many others, I am deeply shocked and saddened by the situation in Ukraine and my heart goes out to everyone involved. It has led us to fundamentally rethink bp’s position with Rosneft. I am convinced that the decisions we have made as a board are not only the right ones to do, but also in the long-term interest of bp.
“Our number one priority is taking care of our wonderful people in the region and we will do our very best to support them. We are also looking at how bp can support the wider humanitarian effort.”
The layoff will require bp to change the accounting for its Rosneft interest and expects to report a material non-cash charge in May in its first quarter 2022 results.