Russia's Medvedev concerned about BP's future

18th June 2010, Comments 0 comments

Russia's President Dmitry Medevedev expressed concern Thursday over the future of BP, wondering whether the massive oil spill in the Gulf of Mexico would lead to the "annihilation" of the British oil giant.

In an interview with the Wall Street Journal, Medevedev stopped short of saying the disaster would prompt a review of Russia's partnership with BP, but he said: "This is a wake-up call."

"Certainly, we are not indifferent to their future... Hopefully, they can absorb the losses," he was quoted as saying.

BP is present in Russia through TNK-BP, the third largest oil producer in the country, accounting for roughly a quarter of BP's global production.

BP owns half of TNK-BP and the other half is owned by Alfa Access-Renova, a consortium of Russian businessmen.

The Journal said Medvedev laughed nervously when asked how the oil spill would affect Russia's view of BP as a partner.

"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 breakup into pieces is a matter of expediency." chr/jm/fgf

© 2010 AFP

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