Potential collapse of BP joint venture with Russia over visa dispute

For the last several months UK based BP has been in intense negotiations to obtain visas for the roughly 100 permanent personnel working in Russia for the joint venture TNK-BP.  If visa issues are not resolved quickly BP could be forced to leave the joint venture in the power of Russian investors Viktor Vekselberg, Mikhail Fridman, German Khan, and Len Blavatnik which could seriously hurt their abilities to conduct business successfully in Russia as operation control would be surrendered.

 Chief Executive Officer for BP, Robert Dudley has stated that "We have been working with the Russian authorities and within Russian laws since April to resolve this issue and will continue to do so."  Dudley went on to say "However, we have been given no ground to believe this issue will be resolved before senior international staff and their families will have to leave Russia.  Unfortunately, this now appears very likely."

 Robert Dudley requested back in May that the Russian partners apply for 150 visas.  Somehow Russian joint venture partner German Kahn only applied for 63 visas.  After a little negotiation this number was upped to 70 visas.  Some speculate that the Russian joint venture partners are trying to gain control of TNK-BP and sell it to an energy group owned by the Kremlin such as Gazprom.

 While negotiations still continue, BP spokesman said "We are both surprised and disappointed that TNK-BP management's properly authorized request has been denied, and that a process which the company has gone through without problems in previous years has been interfered with by two share holders in the company's management, acting without authority in disregard of agreed and established internal processes."

 www.tnk-bp.com