Arbitration court scuttles BP-Rosneft deal

A Stockholm arbitration panel ruled on Thursday that the interim injunction issued on a deal between BP and Rosneft should continue, Alfa-Access-Renova (AAR) CEO Stan Polovets said.

AAR represents a group of tycoons who own half of British-Russian oil firm TNK-BP, which took the case to court.

Commenting on the ruling, BP said it would look for ways to carry out the deal with Rosneft despite the injunction.

TNK-BP, a 50-50 joint venture between BP and a group of tycoons represented by the AAR consortium, said that BP violated a shareholder agreement.

BP and Rosneft agreed a $16 billion share swap deal on January 14 in which Rosneft exchanged 9.5% of its stock for 5% in BP. The two firms also agreed to jointly undertake exploration and development projects on the Russian Arctic shelf.

AAR argues that the BP-Rosneft deal violates the right of refusal on deals in Russia enshrined in TNK-BP’s shareholder agreement.

MOSCOW, March 24 (RIA Novosti)

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