British energy giant BP stated it will exit its nearly 20% holding in Russian state-owned oil producer Rosneft days, according to a report by The Wall Street Journal on Monday.
The British company faces a possible loss of nearly $25 billion, valued at $14 billion, plus an extra expected charge of foreign-exchange losses. BP depends on Rosneft for nearly one-third of its oil-and-gas production.
BP Chief Executive Bernard Looney and former CEO Bob Dudley will resign from the board of the Russian oil giant Rosneft.
It is uncertain how BP will dispose of the Rosneft stake in a perilous time for Russian companies, which are facing a barrage of sanctions and limits on their capacity to access the global financial system.
BP’s decision signaled a rapidly rising rebound by Western businesses facing huge moral and political pressure to sever Russia ties after the country’s military campaign against Ukraine. BP down -6.53%Глкф