BP fined in Russia for failed Rosneft deal

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MOSCOW, July 27 (UPI) -- A Russian court ordered British energy company BP to pay its Russian joint venture TNK-BP $3.1 billion in damages for a failed Rosneft deal.

A Russian court said BP is obligated to pay $3.1 billion to TNK-BP because the collapsed bid hurt the Russian joint venture's value, reports Bloomberg News. BP said it would appeal the ruling.

A proposed January 2011 deal between BP and Rosneft for work in the arctic collapsed after TNK-BP, BP's joint venture in Russia, said the proposal violated terms of its shareholder agreement with BP. Rosneft later made a similar deal with U.S. supermajor Exxon Mobil.

BP last week said it was in the beginning stages of the potential sale of its stake in the joint venture following a move by Alfa Access Revnoa, which represents Russian interests in TNK-BP, to purchase part, or all, of BP's half.

Rosneft said, in a statement this week, it let BP know it was interested in taking on its stake in TNK-BP. Both sides, the company said, agreed to start negotiations on a potential deal.

TNK-BP was formed in 2003. By 2008, the Russian representatives were frustrated with the direction of the company. Bob Dudley, now chief executive at BP, left the top post at TNK-BP in 2008.