Dudley left

Russian shareholders of TNK-BP received operational management of the oil company

The head of TNK-BP, Robert Dudley, left Russia yesterday to manage the company from abroad. The press service of TNK-BP reported this evening. She also released a statement from Mr Dudley, which said: “ Despite having a valid employment contract, I was unable to obtain a work visa . The uncertainty created by my transit visa, which expires this Sunday, is extremely destabilizing for my work and for the TNK-BP group of companies as a whole. In addition to the well-known shareholder dispute, the company and I personally have faced a number of unprecedented investigations, proceedings, audits and other challenges. I have made this decision after careful consideration, taking into account the express advice of independent legal advisers. At the same time, I will continue to perform my functions as General Director of TNK-BP and Chairman of the Board. I must strive to ensure continuity of management in the best interests of all shareholders pending resolution of the disputes between the Alfa, Access, Renova (AAR) consortium and BP.”

The departure of Mr Dudley (and the day before - 60 of the company's technical specialists) means that his visa problem is unsolvable for the foreseeable future: obviously, he cannot prove that his contract is valid (it expired on December 31 last year, but - Mr. Dudley considers it extended in accordance with the Labor Code, and the Russian shareholders of TNK-BP - invalid in accordance with the Law “On Joint Stock Companies”) and submit it to the Federal Migration Service to obtain a business visa. This situation gives carte blanche to the Russian shareholders of TNK-BP. After all, it is obvious that the head of the Anglo-Russian company, despite his statement, will not be able to fully manage the company from afar. Therefore, Russian partners may try through the courts to get him dismissed even from the post of acting head of the company (Mr. Dudley is now de facto acting until the appointment of a new president of TNK-BP).

However, BP promises support for Mr. Dudley. Chief executive Tony Hayward said yesterday: “We regret that Mr Dudley has come under such strong attack that he has had to decide to leave Russia. He has proven to be an outstanding leader as Chief Executive Officer and we will continue to provide him with our full support in carrying out his responsibilities in managing the joint venture in the interests of all shareholders. BP will use all means at the company's disposal, both in Russia and abroad, to protect its legitimate interests as a shareholder owning 50% of TNK-BP shares. These measures include filing a claim in arbitration court against AAR demanding compensation for all losses incurred by BP as a result of the consortium’s violation of the shareholders’ agreement.”

Mr. Dudley in his statement speaks of the hope that “the administrative pressure on the TNK-BP group will now be eased.” And BP, in a press release, indicates that it “sympathizes with Mr. Dudley’s position that the ongoing intimidation organized by Alfa Group, Access Industries and Renova makes it impossible for him to perform his functions as the chief executive officer of TNK-BP.”

The companies did not provide any details about how the work of TNK-BP and BP will be structured in the foreseeable future. However, it is obvious that de facto management of TNK-BP is passing into the hands of executive directors and, according to established practice, representatives of Russian shareholders: the company will be led by German Khan (co-owner of Alfa) and Viktor Vekselberg (Renova).

Thus, it will now be very difficult for BP to retain a 50 percent share of TNK-BP. After all, it’s no secret that the scandal between Russian and British shareholders began over who will have control over the oil company, which Gazprom also wants to absorb. The Russian authorities have already made it clear that they will not interfere in what is happening. However, Kremlin and government officials have already made comments on the topic that BP should not restrain the expansion of TNK-BP into foreign markets. And after these comments, it is extremely difficult to regard what is happening with TNK-BP as an internal corporate conflict.

Nikolay GORELOV