BP moves to settle Russia dispute
The row has focused attention on the rights of foreign investors in Russia.
BP has signed an agreement aimed at solving a festering dispute over control of its Russian venture TNK-BP.
The boss of TNK-BP, Robert Dudley, will step down as part of the deal with the Russian billionaires that control half of the business.
Three independent directors will also be appointed to TNK-BP's board.
Mr Dudley's departure had been central to the power struggle between BP and the Russian investors in the venture, which accounts for 25% of BP's profits.
The memorandum of understanding, signed on Thursday, also includes the option to list up to 20% of the venture on international markets.
TNK-BP's Russian partners had long called for Mr Dudley's departure and Mr Dudley left Russia in July in the face of what he said was "sustained harassment".
"This is a positive signal for the Russian market "
Igor Sechin, Russian deputy prime minister
BP said it had agreed to offer a Russian-speaking candidate for the post, with extensive Russian business experience.
The Russian shareholders had accused BP of running TNK-BP like a subsidiary and Mr Dudley of favouring the British shareholder.
BP chairman Peter Sutherland said that the agreement, to be finalised over coming months, would relieve recent tensions between the two sides.
"It will create a stable base from which to grow the joint venture to the benefit of everyone involved, including the Russian state," Mr Sutherland said
He said that Mr Dudley had been an outstanding chief executive and would be hard to replace.
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Chickenkiller
Sep 4, 2008 | 9:38 PM |
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