BP inflicts $35billion blow to Russian oil company as Vladimir Putin fumes over increased sanctions

A global company has wiped billions off Russia’s plate as brutal sanctions continue to rain down on Vladimir Putin.

British petroleum giant BP has joined the global push against Russia, announcing on Monday it will be dumping its 19.25 per cent share in Rosneft, a state-controlled Russian oil and gas company.

The decision came as Russian leader Vladimir Putin continued his assault on Ukraine, leading to worldwide backlash including government-placed sanctions and ostracism from dozens of industry leaders.

BP CEO Bernard Looney announced he would be stepping down from Rosneft’s board following the company’s exit, which will reportedly hurt the Russian company to the tune of $25 billion (A$35 billion).

“Like so many, I have been deeply shocked and saddened by the situation unfolding in Ukraine and my heart goes out to everyone affected. It has caused us to fundamentally rethink BP‘s position with Rosneft,” Mr Looney said in a statement.

“I am convinced that the decisions we have taken as a board are not only the right thing to do, but are also in the long-term interests of BP.”

BP Chairman Helge Lund said the has worked with “brilliant Russian colleagues” for decades, but said the recent aggression from Russia’s military on a sovereign state “represents a fundamental change.”

“The Rosneft holding is no longer aligned with BP‘s business and strategy and it is now the board’s decision to exit BP’s shareholding in Rosneft,” Lund said in a statement.

Rosneft immediately responded, claiming it has come under “unprecedented pressure” and blamed “false reports and conclusions” for the drastic action currently being taken against Russia.

“BP has come under unprecedented pressure from both the regulator and its shareholders. BP‘s decision was preceded by a Western media campaign full of false reports and conclusions,” Rosneft said in a statement on its website.

“The decision of the largest minority shareholder of Rosneft destroys the successful, 30-year-long co-operation of the two companies.”

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BP has made a major move against Russia as companies around the

Mr Putin reacted to the sanctions by what has been described as a chilling “escalation”.

The EU announced harsh new sanctions against Russia over its invasion of Ukraine, closing its airspace to Russian aircraft and banning Russian state media broadcasting in the bloc.

The US has targeted all ten of Russia’s largest financial companies, introducing measures against institutions holding nearly 80 per cent of Russian banking sector assets.

Several countries have blocked state-backed media outlet Russia Today, with Australian browsers unable to reach the website without an VPN.

“Western countries aren’t only taking unfriendly economic actions against our country, but leaders of major NATO countries are making aggressive statements about our country,” Mr Putin said.

“So I order to move Russia’s deterrence forces to a special regime of duty.”

He called the sanctions “illegal” as he ordered the defence minister and chief of the general staff to put the Russian army on high combat alert.

The order means Russia’s nuclear weapons will be prepared for increased readiness to launch.

Vladimir Putin has blasted the global outcry against his country, as sanctions continue to rain down on Russia.

Emergency services in front of the bombed civilian building in a residential area in Kyiv.

Around the world, thousands have taken to the streets in major cities to voice their outrage at Russia’s military operation.

Dressed in the blue and yellow colours of the Ukraine flag and bearing posters crying “No World War 3” and “Russians go home”, hundreds of thousands of people took to the streets around the world on Sunday to denounce Russia’s invasion of its neighbour.

From Berlin to Baghdad to Quito and Saint Petersburg, demonstrators chanted “shame” against Russian President Vladimir Putin, while others waved banners with slogans like “Putin murderer” or “stop the monster”.

In the German capital, police estimated turnout as at least 100,000, while Prague drew 70,000 and Amsterdam 15,000.

Organisers of the Berlin protest put the numbers at five times the police estimate, with demonstrators massing at the Brandenburg Gate, a stone’s throw away from the imposing Russian embassy.

Although the embassy - in which Russian diplomats both work and live - was cordoned off by police, some protesters gathered in front shouting “glory to Ukraine” and singing Ukrainian songs.

“It is important to me for Germany to show that it is standing for democracy in Europe,” said Hans Georg Kieler, 49, who had turned out at the demonstration.

He voiced approval for Germany’s decision to begin delivering armaments to Ukraine, but said he thought “we could have helped Ukraine more”.

- with AFP

Originally published as BP inflicts $35billion blow to Russian oil company as Vladimir Putin fumes over increased sanctions