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| Version 2 | Version 3 |
|---|---|
| BP moves to settle Russia dispute | BP moves to settle Russia dispute |
| (20 minutes later) | |
| BP has signed an agreement aimed at solving a festering dispute over control of its Russian venture TNK-BP. | BP has signed an agreement aimed at solving a festering dispute over control of its Russian venture TNK-BP. |
| The deal with the Russian billionaires that own half of the business will see current boss of TNK-BP, Robert Dudley, lose his job. | |
| Three independent directors will also be appointed to TNK-BP's board. | Three independent directors will also be appointed to TNK-BP's board. |
| BP has been engaged in a power struggle with its Russian partners at the venture, which supplies around 25% of BP's profits. | BP has been engaged in a power struggle with its Russian partners at the venture, which supplies around 25% of BP's profits. |
| The memorandum of understanding, signed on Thursday, also includes the option to list up to 20% of the venture on international markets. | The memorandum of understanding, signed on Thursday, also includes the option to list up to 20% of the venture on international markets. |
| TNK-BP's Russian partners had long called for Mr Dudley's dismissal and Mr Dudley left Russia in July in the face of what he said was "sustained harassment". | TNK-BP's Russian partners had long called for Mr Dudley's dismissal and Mr Dudley left Russia in July in the face of what he said was "sustained harassment". |
| This is a positive signal for the Russian market Igor Sechin, Russian deputy prime minister | This is a positive signal for the Russian market Igor Sechin, Russian deputy prime minister |
| BP said it had agreed to offer a Russian-speaking candidate for the post, with extensive Russian business experience. | BP said it had agreed to offer a Russian-speaking candidate for the post, with extensive Russian business experience. |
| BP chairman Peter Sutherland said that the agreement, to be finalised over coming months, would relieve recent tensions between the two sides. | BP chairman Peter Sutherland said that the agreement, to be finalised over coming months, would relieve recent tensions between the two sides. |
| "It will create a stable base from which to grow the joint venture to the benefit of everyone involved, including the Russian state," Mr Sutherland said | "It will create a stable base from which to grow the joint venture to the benefit of everyone involved, including the Russian state," Mr Sutherland said |
| He said that Mr Dudley had been an outstanding chief executive and would be hard to replace. | He said that Mr Dudley had been an outstanding chief executive and would be hard to replace. |
| 'Positive signal' | 'Positive signal' |
| BP owns 50% of the venture while the Russian shareholding is made up of a number of Russian billionaires who control a consortium known as Alfa Access Renova (AAR). | BP owns 50% of the venture while the Russian shareholding is made up of a number of Russian billionaires who control a consortium known as Alfa Access Renova (AAR). |
| Russia welcomed the compromise between AAR and BP. | Russia welcomed the compromise between AAR and BP. |
| "We are pleased that this situation has been resolved and the shareholders have come to an agreement without the involvement of third parties, including the state," said Igor Sechin, Deputy Prime Minister of the Russian Federation. | "We are pleased that this situation has been resolved and the shareholders have come to an agreement without the involvement of third parties, including the state," said Igor Sechin, Deputy Prime Minister of the Russian Federation. |
| "This is a positive signal for the Russian market. We support the development of TNK-BP and believe that this company has excellent long-term prospects." | "This is a positive signal for the Russian market. We support the development of TNK-BP and believe that this company has excellent long-term prospects." |