LONDON – Energy company BP has warned that further international sanctions on Russia could have an adverse impact on its profits because of its stake in the oil giant, Rosneft.
The warning came as the company announced that replacement cost profit rose 33 per cent to $3.18 billion from $2.40 billion for the same quarter a year ago.
The company says any erosion of its relationship with Rosneft — in which it holds a 19.75 per cent stake — could also adversely impact production, reserves, “and our reputation.”
BP is already in a sticky situation because of sanctions targeting Igor Sechin, Rosneft’s president. Sechin is seen as the mastermind behind the 2003 legal assault on the private oil company Yukos.