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| Version 2 | Version 3 |
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| Medvedev questions future of BP | Medvedev questions future of BP |
| (about 1 hour later) | |
| The Gulf of Mexico oil disaster could cost BP $40bn, analysts say | The Gulf of Mexico oil disaster could cost BP $40bn, analysts say |
| Russian President Dmitry Medvedev has questioned the future of BP, saying the oil giant may face "annihilation" after the Gulf of Mexico oil spill. | Russian President Dmitry Medvedev has questioned the future of BP, saying the oil giant may face "annihilation" after the Gulf of Mexico oil spill. |
| In an interview with the Wall Street Journal, he described the spill as a "wake-up call", and said that "hopefully [BP] can afford the losses". | In an interview with the Wall Street Journal, he described the spill as a "wake-up call", and said that "hopefully [BP] can afford the losses". |
| Moody's rating agency also downgraded BP's credit rating by three notches. | Moody's rating agency also downgraded BP's credit rating by three notches. |
| BP, which says its finances are sound, has agreed to put aside $20bn (£13.5bn) to compensate victims of the oil spill. | BP, which says its finances are sound, has agreed to put aside $20bn (£13.5bn) to compensate victims of the oil spill. |
| Moody's said the full costs of the oil spill would have a negative impact on the company's cash flow for "a number of years". | Moody's said the full costs of the oil spill would have a negative impact on the company's cash flow for "a number of years". |
| As a result, it downgraded BP from A2 to Aa2. | As a result, it downgraded BP from A2 to Aa2. |
| However, it said the company's payments into the compensation fund were "manageable". | However, it said the company's payments into the compensation fund were "manageable". |
| Earlier this week, the two other major international credit ratings agencies, Fitch and Standard & Poor's, also downgraded BP. | Earlier this week, the two other major international credit ratings agencies, Fitch and Standard & Poor's, also downgraded BP. |
| Despite the downgrade, BP shares were up 2.5% by mid-afternoon trading, having climbed almost 7% on Thursday. | |
| 'Complacency' | 'Complacency' |
| Mr Medvedev was less sure about BP's ability to cover its payments in the coming months. | Mr Medvedev was less sure about BP's ability to cover its payments in the coming months. |
| "What I know is that BP will have to pay a lot of money this year," he said. | "What I know is that BP will have to pay a lot of money this year," he said. |
| "Whether the company can digest those expenditures, whether they will lead to the annihilation of the company or its break up is a matter of expediency". | "Whether the company can digest those expenditures, whether they will lead to the annihilation of the company or its break up is a matter of expediency". |
| BP has said that it continues to perform well, with cash flow "expected to exceed $30bn in 2010 before taking into consideration costs related to the Deepwater Horizon spill." | BP has said that it continues to perform well, with cash flow "expected to exceed $30bn in 2010 before taking into consideration costs related to the Deepwater Horizon spill." |
| On Thursday, BP boss Tony Hayward was grilled by US congressmen who accused the company of "astonishing complacency" in ignoring dangers when drilling in the Gulf of Mexico. | On Thursday, BP boss Tony Hayward was grilled by US congressmen who accused the company of "astonishing complacency" in ignoring dangers when drilling in the Gulf of Mexico. |
| Asset sale | Asset sale |
| BP has agreed to pay $5bn into the compensation fund this year, followed by quarterly payments of $1.25bn until the total $20bn is paid. | BP has agreed to pay $5bn into the compensation fund this year, followed by quarterly payments of $1.25bn until the total $20bn is paid. |
| The company has also said it will be selling about $10bn worth of "non-core" assets to raise cash, and has cancelled dividend payments this year. | The company has also said it will be selling about $10bn worth of "non-core" assets to raise cash, and has cancelled dividend payments this year. |
| There has been a great deal of speculation about what assets it might sell. | There has been a great deal of speculation about what assets it might sell. |
| In Russia, BP holds a 50% stake in TNK-BP - a joint venture with AAR, which is owned by a group of Russian billionaires. | In Russia, BP holds a 50% stake in TNK-BP - a joint venture with AAR, which is owned by a group of Russian billionaires. |
| According to analysts at Moscow investment bank Troika Dialog, BP's stake in TNK-BP is worth about $16-$18bn. | According to analysts at Moscow investment bank Troika Dialog, BP's stake in TNK-BP is worth about $16-$18bn. |
| However, analysts said that BP may have to take a hit on the price if it is forced to sell. | However, analysts said that BP may have to take a hit on the price if it is forced to sell. |
| "If BP decides to sell its [stake in TNK], it will have to do so with a discount to find a buyer faster," Viktor Mishnyakov, energy expert from Uralsib, told the BBC Russian Service. | "If BP decides to sell its [stake in TNK], it will have to do so with a discount to find a buyer faster," Viktor Mishnyakov, energy expert from Uralsib, told the BBC Russian Service. |
| BP also owns about 1% of the Russian state-run company Rosneft, which is worth another $900m. Rumours about a possible sell-off caused Rosneft's share price to fall by 6% on Thursday. | BP also owns about 1% of the Russian state-run company Rosneft, which is worth another $900m. Rumours about a possible sell-off caused Rosneft's share price to fall by 6% on Thursday. |
| The head of BP's Russian operations was forced to deny the rumours on Friday, saying that BP has yet to decide exactly which assets to dispose of. | The head of BP's Russian operations was forced to deny the rumours on Friday, saying that BP has yet to decide exactly which assets to dispose of. |
| For its part, Lukoil, one of Russia's biggest oil producers, said it would not be interested in buying any of BP assets should the UK oil company decide to sell. | For its part, Lukoil, one of Russia's biggest oil producers, said it would not be interested in buying any of BP assets should the UK oil company decide to sell. |
| "We are not wolves, we do not eat the weak," said the company's boss Vagit Alekperov. | "We are not wolves, we do not eat the weak," said the company's boss Vagit Alekperov. |
| Rising costs | Rising costs |
| BP made a profit last year of $14bn, down from $25bn a year earlier. | BP made a profit last year of $14bn, down from $25bn a year earlier. |
| Analysts say that the compensation fund and initial clean-up costs would, therefore, be easily affordable for BP. | Analysts say that the compensation fund and initial clean-up costs would, therefore, be easily affordable for BP. |
| However, they also warn that the threat of legal action and significant fines means it needs to conserve cash. | However, they also warn that the threat of legal action and significant fines means it needs to conserve cash. |
| Standard Chartered warned last week that the total cost to the company, including legal costs, could top $40bn. | Standard Chartered warned last week that the total cost to the company, including legal costs, could top $40bn. |