AAR and BP settle outstanding dispute

As reported in the Russian business daily Kommersant on 14 November 2012, the AAR Consortium (Alfa Group, Access and Renova) has reached an out-of-court settlement with former TNK-BP partner BP over the later’s breach of the shareholder agreement when it talked to Rosneft about a possible partnership, bypassing TNK-BP. At one stage, it had looked as if BP might be forced to pay out billions to its former partner AAR, or at least spend considerable amounts on expensive law firms to defer such payments. Now AAR has agreed the payment of USD 325 million, which looks like a bargain by comparison.

At the same time, in the end BP has ended up getting what it wants – creating a partnership with Rosneft separately from TNK-BP and by association AAR. BP has also made a significant amount from its exit from TNK-BP. This deal with AAR provides closure on an eventful partnership with AAR which will for the time being partner Rosneft at TNK-BP, presumably once AAR and BP have taken out dividends from the company.

 

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