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BP -1.3% after Rosneft's Sechin named on new U.S. sanctions list

  • BP (BP -1.3%) opens sharply lower after new U.S. sanctions name Rosneft (RNFTF) CEO Igor Sechin as one of the individuals on its latest list of Russians targeted with asset freezes and travel bans.
  • BP owns a 19.75% stake in Rosneft, making it the biggest foreign investor in Russia's oil sector.
  • It is unclear whether BP could continue normal operations in the U.S. if it continued to be a Rosneft shareholder with Sechin still in charge, yet it would be difficult to find buyers for a holding worth $12.5B in the midst of a crisis, according to a Telegraph analysis.
  • Although officials indicated over the weekend that Gazprom (OGZPY) head Aleksei Miller would be targeted, the final list does not include him.
Comments (16)
  • Ludo5312
    , contributor
    Comments (97) | Send Message
     
    This was always going to be a situation with a lot of country risk attached. Ideally the man in the Kremlin is going to realise that he cannot have his cake and eat it too. Being part of the international community has a price. I suspect that a lot of the risk is priced in.
    28 Apr, 10:22 AM Reply Like
  • doc47
    , contributor
    Comments (1092) | Send Message
     
    A school yard bully vs. the stupid, sissy West. I'd say it's 50/50 as to serious damage being done to the BP shares. Also, I hope the morons that created the UN are happy with the fact that they gave the most belligerent nations on earth veto power over military punishment for their own transgressions.
    28 Apr, 10:29 AM Reply Like
  • Overanalytical
    , contributor
    Comments (770) | Send Message
     
    The sanctions are against Sechin himself not Rosneft. That would mean BP is safe because it's a personal issue, right?

     

    As suggested, BP may need to use that stake to oust Sechin in order to continue their relationship with Rosneft. because the U.S. gov has shown it doesn't have much patience with BP.
    28 Apr, 01:48 PM Reply Like
  • junkjunkjnkman
    , contributor
    Comments (7) | Send Message
     
    I suppose the people on the list will not go New York to buy more luxury apartments anytime soon.
    28 Apr, 02:30 PM Reply Like
  • Manitobatex
    , contributor
    Comments (661) | Send Message
     
    BP has a small problem (12.5 B), I wouldn't be surprised that if the Ukraine situation gets to a point of Russia entering the Ukraine and sanctions accelerate Putin could retaliate in ways that could and would hurt companies such as BP.
    We have recently seen the true Putin, a liar that thinks that he is dealing with a bunch of preschoolers. I hope this is a wake up call for all those countries that depend on Russia for energy resources and the risks that companies have that seek to profit from dealing with Putin & Co.
    28 Apr, 05:09 PM Reply Like
  • Ruslan Zakirov
    , contributor
    Comments (13) | Send Message
     
    Manitobatex,
    Sorry, could you, please, give a single example where you think Putin was cheating.
    28 Apr, 10:34 PM Reply Like
  • Ludo5312
    , contributor
    Comments (97) | Send Message
     
    Ruslan, nowhere did Manitobatex wrote that 'Putin was cheating'. However, invading a sovereign country and grabbing part of the territory can hardly be described as respectful or a 'trust worthy' world leader. Given that Russia was signatory to the most recent conference (Budapest), makes it even more serious offence.
    29 Apr, 10:53 AM Reply Like
  • Sakelaris
    , contributor
    Comments (1410) | Send Message
     
    Does an insurgent entity that violently overthrew a legal and elected government automatically inherit whatever treaty benefits its predecessor had worked out? Just asking.
    29 Apr, 10:58 AM Reply Like
  • daphnex2
    , contributor
    Comments (127) | Send Message
     
    These sanctions will not solve any problems.......only make matters worse. The US is meddling in affairs they should leave alone. Many in eastern Ukraine want elections as in Crimea as they consider themselves Russian and do not want western interference. American companies, i.e. Visa and others who do business in Russia suffer also. BP continues to be a villian no matter what they do.
    28 Apr, 05:13 PM Reply Like
  • Sakelaris
    , contributor
    Comments (1410) | Send Message
     
    Utter madness! America is clueless in this. Doesn't anyone in the US besides me understand that Russia will go to WAR if necessary to keep its kindred people in the Donetsk area from being ruled by the insurgent Kiev government?

     

    Who in the US really wants war over this? And if any US commenters answer that they do want war, they should be sure to add the information on who in their family is in a combat assignment in the US military.

     

    This is one crisis that goes into the "dumber than Vietnam" category.
    28 Apr, 06:44 PM Reply Like
  • King Rat
    , contributor
    Comments (715) | Send Message
     
    I will leave US politics out of my reply here.

     

    "Insurgent Kiev government"... Ukraine has been trying to keep Russia out of its kitchen for over 200 years.

     

    Using possible election fraud to justify annexation of territory would be like Russia annexing Greek islands using the Greek banking crisis as an excuse. If Russia treated Greece as Russia is now treating Ukraine, you would be singing a different tune entirely. Your schadenfreude over this matter is sad.
    28 Apr, 10:34 PM Reply Like
  • Sakelaris
    , contributor
    Comments (1410) | Send Message
     
    Kiev does have an insurgent government that overthrew a democratically elected government.

     

    Ukraine wants Russia out of its kitchen? All the more reason for a new boundary across the Donetsk area that allows more of the Russians and Ukrainians to be governed separately. Then they will not have to deal with all those St George ribbons and Russian flags.
    28 Apr, 10:59 PM Reply Like
  • Ludo5312
    , contributor
    Comments (97) | Send Message
     
    Sanctions do work. Iran is the best example. The results of sanctions are already becoming clear, substantial devaluation of the rouble, major decline in the stock market and massive capital outflows and most Western capex projects on hold. Sanctions are the weapon of choice!
    29 Apr, 10:56 AM Reply Like
  • Ludo5312
    , contributor
    Comments (97) | Send Message
     
    Sakalaris, nobody is served by propaganda style language here. Kiev has an interim president that was selected by a democratically elected parliament in anticipation of democratic elections on May 25. Disrupting that process, apparently one of the goals of the Russian backed insurgents in Donetsk, may be one of the goals of the Kremlin. It will only lead to more severe sanctions that a developing country, like Russia, can hardly afford.
    29 Apr, 11:00 AM Reply Like
  • john001
    , contributor
    Comments (654) | Send Message
     
    If these these sanctions are designed to sway Russia, they will have about as much chance of success as a snowball in hell. When Obama runs out of company fodder, perhaps he will throw his Teleprompter at Putin.
    28 Apr, 05:37 PM Reply Like
  • mark1957
    , contributor
    Comments (21) | Send Message
     
    This whole situation has become a mess in many different ways, actually beyond most people's comprehensive, but the current use of sanctions is a misguided approach used too often by the US without any tangible benefits to show. Where is the diplomacy? Where is the ability to sit down amongst the many different parties to hammer out a workable solution? Just look at the string of mess we have left behind in the past decade to see that our policy goals are flawed - Iran, Iraq, Libya, Afghan, etc. These regions are completely destablized without any signs of normalcy.

     

    In the Ukraine situation, you really have to ask yourself - how many different governments are involved in seeking their own vested interest, and by that I mean without the true interest of Ukrainians. No one is saying the approach used by Russia is correct, but clearly the sanctions imposed by the US/EU won't resolve this crisis. Only true diplomacy and one that the present Obama administration lacks crucial experience.
    29 Apr, 01:19 AM Reply Like
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