FT News Briefing BP to sell its stake in Russia’s state oil company Rosneft
Feb 28, 2022
BP is cutting ties with Russia's state oil firm Rosneft, signaling a major corporate shift in response to geopolitical tensions. Norway's oil fund is also divesting from Russian assets, reflecting growing economic concerns. Meanwhile, the U.S. and allies are imposing tough sanctions on Russia's central bank and excluding some banks from SWIFT, aiming to impact its economy. Amidst rising fears of cyberattacks, cybersecurity companies are seeing a surge in shares as firms globally rush to bolster their defenses.
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BP Divests from Rosneft
- BP divests its 20% stake in Rosneft after 30 years in Russia.
- This unprecedented move follows pressure from the British government due to Russia's invasion of Ukraine.
Divestment Challenges and Impact
- BP's divestment will be complex, with options including writing off the stake, selling back to Rosneft at a discount, or finding another buyer.
- While Rosneft's short-term operations won't be immediately affected, its reputation as a partner and other Western ventures will be impacted.
Sanctions on Russia's Central Bank
- The US and its allies imposed sanctions on Russia's central bank, restricting its access to foreign reserves.
- This action aims to limit Russia's ability to support its economy and evade sanctions.