'British Petroleum's arrival in Russian business means that the era of political risks is over in Russia,' said LUKoil president Vagit Alekperov yesterday at a press conference in St. Petersburg. He added that BP's arrival 'has lifted share prices in Russia in general.'
Last week British oil company BP announced that it was buying a 50% stake in the merged TNK-Sidanko oil company for USD 3 billion in cash and USD 3.75 billion in shares. BP management said that the deal with its Russian partners was 'strategic.' According to analysts, BP's decision to begin making direct investments in Russia could be a signal for other leading international investors to reassess risks in Russia and increase investment limits in Russian assets.
Alekperov also announced that LUKoil does not intend to issue any new shares in the near future.