BP will miss out on £600m dividend after cutting ties with Rosneft
BP will miss out on a £600m dividend after severing ties with Rosneft, the Daily Mail can reveal. Details of the record dividend of the Russian oil giant were released to the market yesterday.
It will guarantee the British energy company an attractive profit from their 19.75pc stake in the business. BP’s decision to split from Rosneft means it is unlikely to receive any cash from the Kremlin-backed business, particularly as the payment will need Vladimir Putin’s approval.
It’s also unclear whether BP would welcome funding from Russia’s top oil producer, which many say is ‘unpalatable’.
CEO Bernard Looney, pictured, initially sought to protect BP’s ties to Russia, but came under public scrutiny shortly after Russia invaded Ukraine.
Its withdrawal of shares comes at the same time as Looney’s resignation from Rosneft’s board of directors. Danni Hewson, an analyst at investment platform AJ Bell, said the payout scenario is unlikely.
The fact that the company went public about severing ties with Russia means that “it will not be popular with the Kremlin, despite its years of doing business in the country”, she said.
A BP spokesman said it was aware of Rosneft’s dividend announcement. Rosneft reported a record-high annual dividend despite Western sanctions, bringing the total annual payout to shareholders just over £5 billion. A vote on the payment of the company’s dividend, calculated at 28 percent per share, will be held at the company’s next shareholder meeting.
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