Wednesday, March 30, 2011

BP (BP), TNK-BP Battle No Big Deal Says Russia

Russia's investment climate is already so bad that even a battle between BP and its shareholders at Anglo-Russian TNK-BP will not do anything to influence experienced investors, according to a senior Kremlin aide.

BP (NYSE:BP) was blocked from expanding its presence in Russia through a $16 billion share swap and joint exploration plans with Russian state giant Rosneft (ROSN.MM) by a Stockholm arbitration panel last week, after TNK-BP's (TNBP.MM) billionaire partners took the case to court.

The move has led to concerns that other energy firms looking to extend their reach may face similar problems.

"Right now our investment climate is so bad that it won't be affected," President Dmitry Medvedev's top economic aide, Arkady Dvorkovich, told reporters.

He said he was hopeful that the dispute would be settled, and when asked what the Kremlin's advice was, Dvorkovich responded: "Find a solution that is acceptable to both sides. I think they'll find one."


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