In a statement, BP also announced the resignation of the company’s chief executive officer Benard Looney from the Rosneft board. At the same time, former BP group chief executive Bob Dudley has also resigned from the board with immediate effect. However, BP did not elaborate on how the exit was arrived at but stated that the whole process would take up charges of up to $25 billion by the end of the first quarter. According to Helge Lund, BP’s chair, the Russian invasion of Ukraine no longer aligns with the company’s business strategy. The UK-listed oil group added that it would no longer report reserves, production, or profit from Rosneft following the exit. Additionally, BP noted that changes in the accounting treatment of the Rosneft shareholding would lead to what the company termed as “material non-cash charge.” However, BP notified shareholders that the company’s financial frame and distribution guidance remains unchanged. BP’s announcement comes as more countries continue piling sanctions on Russia after the government began military action in Ukraine.
Authorities summoned BP
Recently, Looney was summoned by United Kingdom authorities to discuss BP’s position in Russia. Notably, the UK is among the leading countries pushing for tougher sanctions against Russia. Earlier, BP had acknowledged that sanctions on Russia could be challenging for its business in the country. The company added it will continue to comply with all relevant international trade rules and sanctions.
