Russians block BP tie-up with Rosneft

1st Feb 2011 12:49

BP's plans for an $8bn Arctic exploration deal with Kremlin-backed Rosneft have stalled after the High Court granted an injunction to freeze the deal following a request from British oil giant's Russian partners.A London court heard an action launched by Alfa-Access-Renova (AAR), the vehicle owned by a number of Russian oligarchs and which has a 50% stake in TNK-BP.They want to stop the deal with state-run Rosneft, agreed on 14 January, claiming it breaches terms of their own joint venture with the UK firm that includes a clause giving them the right to be part of any action on Russian soil."In accordance with the court order the share swap agreement with Rosneft will not be completed pending this expedited arbitration hearing," BP said after the decision.The injunction lasts until 25 February.News of the injunction comes on the same day BP resumed dividend payments with a pay-out of 7 cents though fourth quarter earnings failed to meet market expectations. It also announced that it is putting up its Texas City refinery and others up for sale.