BP exits its 20 pc stake in Russian oil giant Roseneft in wake of Ukraine invasion

The exit marks the end of more than 30 years of BP's operation in Russia. BP CEO Bernard Looney and former exec Bob Dudley also resigned from Rosneft's board, effective immediately.

Rosneft accounts for around half of BP's oil and gas reserves and a third of its production, Reuters reported.

"This military action represents a fundamental change,” BP chair Helge Lund said in a statement, reported CNBC. “It has led the BP board to conclude, after a thorough process, that our involvement with Rosneft, a state-owned enterprise, simply cannot continue,” the statement added.

Last week, Wall Street Journal reported that BP had been under pressure from the British government to offload its stake in Rosneft.

UK’s business secretary, Kwasi Kwarteng had also held a meeting with BP over the issue.

Welcoming the decision, Kwarteng tweeted: “Russia’s unprovoked invasion of Ukraine must be a wake-up call for British businesses with commercial interests in Putin’s Russia."

Consequent to BP's exit, the firm said it is likely to report a material non-cash charge with its first-quarter 2022 results in May.

The move indicates the toughest step so far by a Western oil firm with a stake in a Russian company amid a deepening crisis between the West and Moscow.

BP said the exit and monetary charge will not affect its financial targets, both short and long term, as plans to reduce its stake in oil and gas to low-carbon fuels and renewable energy.