Moscow won't touch TNK-BP row with BP

MOSCOW, April 21 (UPI) -- The Kremlin is staying out of a case pitting BP against Russian counterpart TNK-BP over a deal with Russian oil company Rosneft, the prime minister said.

Russian Deputy Prime Minister Igor Sechin backed a proposed January share swap between BP and Rosneft. Sechin was serving on the board of Rosneft but has since resigned as part of an effort from Moscow to get government leaders officially out of the energy sector.

Russian Prime Minister Vladimir Putin said the Kremlin is staying out of a lawsuit filed by the Russian partners in TNK-BP.

"The government does not interfere in the operations of companies," he was quoted by state-run news agency RIA Novosti as saying.

The proposed deal includes the potential for work in the Russian arctic. TNK-BP, a venture between BP and four Russian billionaires represented by Alfa-Access-Renova, said the Rosneft deal violated the terms of the shareholder agreement with BP.

The British oil company defended the deal at its annual shareholder meeting last week, saying TNK-BP was the main business vehicle for its work in Russia.

BP noted it held a small percentage of Rosneft shares and had a history of working in the Russian arctic already.