bp would like to confirm the current status of its business and interests in Russia.
On 27 February 2022, bp’s board decided that bp would exit its 19.75% shareholding in Rosneft and its other business in Russia. bp was the first international company to announce such an exit. That decision remains unchanged and bp has no intention of returning to business as usual in Russia.
bp’s nominated directors stood down from Rosneft’s board immediately and bp withdrew its international staff from the country. bp has since withdrawn businesses such as lubricants and aviation.
bp’s board took the decision to exit Russia only after a thorough process and bp remains confident it was the right decision. As a result, bp took a post-tax charge of $24.4 billion in its 1Q 2022 results – the largest such impact on any company globally. bp no longer reports any equity share of oil and gas reserves or production or of earnings from Rosneft - reducing bp’s reported oil and gas reserves by more than 50%, reported oil and gas production by around one third, and reported earnings by around $2 billion a year.
bp is aware of statements regarding Rosneft’s payment of dividends but it has not received any payments since its decision of 27 February. It has no expectation of receiving any in the future.
The process is complex due to both international sanctions and Russian regulations. bp is actively engaged in marketing the asset, but its ability to sell is constrained by Russian legislation and the Russian government, who have effective approval rights on any buyer, as well as by limitations resulting from international sanctions. It was anticipated that this would be – and it is proving to be – a drawn-out process.