Russian Billionaires Win BP (BP), Rosneft Share-Swap Battle

The share swap deal between BP (NYSE:BP) and OAO Rosneft was blocked by Russian billionaires who had fought against the deal.

BP said in a statement it was disappointed by the outcome of the tribunal and that it would look to find a way to “resolve its differences” with the Russian billionaire partners in its TNK-BP joint venture. It will also apply for a ruling as to whether the share swap can proceed by itself.

BP’s partners, represented by the AAR group, claim the right for TNK-BP to pursue new opportunities in Russia on behalf of the London-based oil company. Last month, they won a court injunction to delay the deal.

The ruling is a setback for BP’s efforts to exploit one of the largest untapped oil troves. The January agreement with Russia’s state-owned oil company was part of Chief Executive Officer Robert Dudley’s strategy to revive the U.K. producer after last year’s Gulf of Mexico oil spill last year.

BP closed Thursday at $46.81, gaining $0.58, or 1.25 percent.




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