British Petroleum Company’s Courageous Step to Bid Adieu Rosneft’s 20% Stake amid Russia-Ukraine Conflict

The war in Ukraine started in the early hours of Thursday, February 24th, after the tensions between Russia and Ukraine were on crossfires for the past few weeks. Russian troops invaded Ukraine across many fronts just after the days Beijing Winter Olympics ended, due to which the global equity markets have rallied, and energy prices are gyrated. Russia is the world's second-largest oil producer and exporter that sells crude and natural gas to European Union, providing about 35% of its supply. Brent crude oil has surged more than $98 a barrel for the first time in 8 years since 2014 as the crises have sparked fears of a disruption to the region's major energy exports.

British Petroleum (BP) Company, one of the world's seven oil and gas "supermajors," headquartered in London, announced on Sunday that it had exited its 19.75% stake that it held since 2013 in Rosneft, a Russian-controlled oil company, amid Russia-Ukraine conflict. The invasion of Russia in Ukraine has forced the energy giant to reconsider its holding in a Russian oil company after it had worked in Russia for more than three decades. According to the reports, BP faced tremendous pressure from the United Kingdom government to offload its stake from the Russian oil company. The company had further acknowledged that any sanction on Russia could be problematic for its business. British officials were accusing Rosneft of fueling the Kremlin's advance into Ukraine, reported a Wall Street Journal. The British company has also announced the resignation of Bernard Looney, the chief executive officer, and Bob Dudley, former executive, from Rosneft's board, effective immediately.

Russia's aggression in Ukraine stirred reactions from companies including BP and United Parcel Service, as well as Norway's sovereign wealth fund as the world continues to put pressure on President Vladimir Putin.