BP to offload stake in Russian oil giant Rosneft and take up to $25B charge

BP said on Sunday it had decided to exit its 19.75 % stake in Russian oil giant Rosneft after Russia's invasion of Ukraine.

The decision to abandon the Rosneft holding will result in charges of up to $25 billion at the end of the first quarter, BP said in a statement. BP acquired its Rosneft shareholding in 2013 as part of the $12.5 billion sale of a stake in TNK-BP, reports Reuters.

BP Chief Executive Bernard Looney, who will step down from the Rosneft board, said in a statement: "Like so many, I have been deeply shocked and saddened by the situation unfolding in Ukraine and my heart goes out to everyone affected. It has caused us to fundamentally rethink bp's position with Rosneft. I am convinced that the decisions we have taken as a board are not only the right thing to do, but are also in the long-term interests of bp. Our immediate priority is caring for our great people in the region and we will do our utmost to support them. We are also looking at how bp can support the wider humanitarian effort."

BP was warned of government "concern" about its involvement in Russia, in a telephone call between UK business secretary Kwasi Kwarteng and the oil company's boss Bernard Looney on Friday.

Kwarteng was believed to be uneasy about BP's stake in Rosneft, particularly given its role in providing fuel for the military effort in Ukraine.

The British oil "supermajor" had been deeply entwined with Russia for years and held two seats on the 11-strong board of Rosneft.

Rosneft is run by Vladimir Putin's de facto deputy, Igor Sechin, who has been nicknamed Darth Vader due to his fearsome power.