BP blocks $1.8bln dividend payment to Russian partners
BP has blocked the payment of $1.8 billion in dividends due from its Russian joint venture in a bitter dispute with its billionaire partners, the U.K.'s The Sunday Telegraph reported on Sunday.
The ongoing row between the Russian AAR consortium of shareholders in TNK-BP and the British oil major, each owning 50% in Russia's third largest oil producer, has been over company strategy, with the Russian investors also demanding cuts in the number of foreign staff working in Russia.
The Russians have also demanded the dismissal of TNK-BP's chief executive, R
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obert Dudley, saying he has acted only in the interests of BP.
According to the paper, the decision was taken at a secret board meeting of TNK-BP, which was held in Cyprus ten days ago.
The move is intended to put pressure on BP's four Russian billionaire partners and secure a new visa for Dudley who may face expulsion from Russia by the end of the month, The Sunday Telegraph said.
On Friday, Russia's migration authorities extended Dudley's visa only until July 29. The Federal Migration Service of Russia demanded on Wednesday a copy of Dudley's new contract with TNK-BP before issuing him a new visa. The migration authorities said his labor contract had expired, and that a new visa could not be issued without a valid contract.
BP has blocked the payment of $1.8 billion in dividends due from its Russian joint venture in a bitter dispute with its billionaire partners, the U.K.'s The Sunday Telegraph reported on Sunday.
