Boston, MA 05/28/2014 (wallstreetpr) – The geopolitical unrest kicked off by Russia through its annexation of Crimea from Ukraine led to widespread sanctions against Russia by the West. However, it seems no about of pressure from White House or elsewhere is going to keep BP plc (ADR) (NYSE:BP) and its peers with interest in Russia from doing business with the country.
Last week’s economic forum at St. Petersburg showed just how difficult it will be for the U.S. and its European allies to push Russia to the economic wall. Despite boycott calls, BP plc (ADR) (NYSE:BP), Exxon Mobil Corporation (NYSE:XOM) and Total SA (ADR) (NYSE:TOT) refused heed the call and instead attended the high-profile economic meeting in Russia. However, major U.S. banks avoided the meeting.
BP extends ties with Rosneft
BP plc (ADR) (NYSE:BP) not only broke ranks with authorities to attend the St. Petersburg International Economic Forum, but also extended and deepened ties with Russia in energy investment. The company signed an agreement with Rosneft, Russia’s state-controlled oil company, to jointly undertake oil exploration projects in the Volga-Urals region. The joint venture will be owned 51 percent by Rosneft and 49 percent by BP.
According to Bob Dudley, CEO of BP plc (ADR) (NYSE:BP), the many natural resources in Russia means that the country is an important player in the world energy industry and continued cooperation will be in the best interest of the producers and consumers of energy all over the world.
Business as usual
Exxon Mobil Corporation also signed almost a similar deal with Rosneft. The Exxon-Rosneft deal involves the construction of a liquefied natural gas (LNG) terminal facility on the pacific coast of Russia.
The French oil giant Total SA was not left out of the Russian oil deal. The company inked an agreement with Lukoil, the second largest oil company in Russia, to explore oil and gas properties in the country. And Total CEO Christophe de Margerie did not stop at deal signing but also issued a strong remark that it will be business as usual with Russia.
BP plc (ADR) (NYSE:BP) and its peers signed deals with Rosneft even as the company’s CEO, Igor Sechin, recently got a sanction slap from the U.S. that saw its assets frozen.
