While BP (BP -3%) earlier today became the first big western company to openly admit that sanctions against Russia could hurt its business, BP execs later were eager to justify their long-term commitment to Russia as well as the rationale for maintaining a position in the country.
"Russia is the largest oil and gas producing country on the planet, and the world is going to to need 40% more energy between now and 2035. That’s why you can see many, many, many international companies working in Russia," CEO Bob Dudley says.
It's true that Exxon (XOM -0.4%) and Chevron (CVX -0.2%) are notable among other oil majors which hold minority interests and strategic partnerships with Russia oil companies, but BP’s exposure makes it much more susceptible to political headwinds via its associations with Rosneft (OTC:RNFTF), says Jasper Lawler of CMC Markets.
One top 20 shareholder in BP also worries for the future: “The situation is very uncertain... the worsening relations are a net negative for BP.”