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BP’s actions demonstrate wish to remain shareholder of Rosneft, says CEO of Russian major

For Rosneft BP’s announcement about its leaving Russia made in February was unexpected, Igor Sechin said

ST. PETERSBURG, June 18. /TASS/. BP keeps a stake in Rosneft and a number of joint ventures despite the unexpected announcements suggesting the opposite, Chief Executive Officer of Russia’s oil major Igor Sechin said, adding that it is beneficial since BP’s revenue in the country since 2003 has reached $36 bln, and the company may expect dividends "with nine zeroes in foreign currency" from Rosneft.

For Rosneft BP’s announcement about its leaving Russia made in February after 30 years of successful cooperation with the Russian oil producer was unexpected, CEO said at the St. Petersburg International Economic Forum. "Its revenue from Russian business since 2003 totaled $36 bln with only $10 bln worth of aggregate investments," he said, adding that the possible withdrawal contradicts the commercial interests of BP and its shareholders.

In particular, BP still remains Rosneft’s biggest private shareholder with a stake of 19.75%, as well as holds shares in large joint ventures, Sechin noted. "All those actions demonstrate the wish to remain a participant of Rosneft and wait out the unprofitable geopolitical situation without real losses," he believes.

Amid the arrest of its assets in other countries, Russia is not creating obstacles to foreign companies, particularly on dividends regarding BP, Rosneft CEO noted. "The amount will be a figure with nine zeroes in foreign currency," he stressed, adding that the only restriction is a requirement of the Russian regulator to use a special account.

At the end of May, the board of directors of Rosneft recommended the payment of final dividends for 2021 in the amount of 23.63 rubles per share, which will allow allocating 50% of net profit under International Financial Reporting Standards (IFRS) to dividends. Taking into account the payment of dividends for the first half of 2021, the total dividend per share for 2021 will amount to 41 rubles 66 kopecks, while the total amount of funds for payment of dividends will be 441.5 bln rubles ($6.8 bln), which corresponds to 50% of IFRS net income attributable to Rosneft shareholders. The board decided to convene the Annual General Meeting of Rosneft Shareholders for approving dividends and hold it by absentee voting on June 30, 2022.