BP’s Bashful Blush Over Russia Sanctions
BP warned last year that a
full‑blown crackdown on Russia from the West could bite straight into its profits. The oil giant is a partner of Rosneft— Russia’s own “big‑fat” oil company— which it owns 20 % of, while the government controls 40 %. In its yearly report, BP tossed out a caution that “events in or relating to Russia, including trade restrictions and other sanctions, could adversely impact our income and investment in or regarding Russia.”
Fast forward to today: Russia is under massive, multi‑layered sanctions that are sure to drain the
Russian economy. Yet BP chose to stay fairly quiet when the Kremlin launched its full‑scale invasion of Ukraine at 5 am on Thursday.
Bloc‑Buddies in Boardrooms
- Former CEO Bob Dudley and current CEO Bernard Looney are both on Rosneft’s board.
- Several ex‑politicians have since stepped down after the tension spikes.
- BP is also linked to Gazprom— another state‑owned powerhouse— making the whole situation even more sticky.
UK Kebabs & The Liberal Democrat Laugh
Sir Ed Davey, leader of the Liberal Democrats, called for the UK to slap sanctions on both Rosneft and Gazprom. He said, “The absence of Gazprom and Rosneft—part-owned by BP— from today’s sanctions list is the elephant in the room. The UK must do everything we can to stand in solidarity with the people of Ukraine.”
Davey was clear: “Russia’s state‑owned oil and gas giants stand to profit from this war and the soaring prices. We must start treating Putin’s Russia like the rogue state it is and immediately cut off UK investment in these firms.”
BP’s “Pedantic” Pledge
When asked about the invasion and whether it will hold Russia accountable, BP responded, “We are closely watching the concerning developments in Ukraine and Russia. We are doing everything we can to monitor the fast‑changing situation. Our priority is the safety and security of our people. We’ll support our teams and push for any help they need. BP will, of course, comply with all relevant sanctions.”
Bottom Line
The oil industry sits on a tightrope: balancing business interests, political pressures, and moral dilemmas. BP’s cautious line‑up, coupled with its board ties to Russian state oil, leaves critics scratching their heads. As sanctions tighten and oil prices spike, the question remains: will the English giant finally crack the silence or keep backing the status quo?
