US slams Russia-BP deal

The share-swap deal signed by Rosneft and British Petroleum last Saturday has triggered a wave of critical remarks from American politicians who say that such an alliance will distract BP from the United States and will thereby have a negative impact on the country’s national security. Given the situation, US congressmen have urged the Committee for Foreign Investments to dissect the agreement.

BP has long become a global company with interests in different parts of the world. However, the United States accounts for one fourth of its assets and one fourth of its oil and gas output. Had they chosen to do so, the American investors could have declined the deal with Rosneft, voted no-confidence on BP’s policies and re-elected its management. Instead, the US approved the agreement under which Rosneft acquires five percent of BP’s shares in exchange for 9.5 %  Rosneft stock. Such a stake is bound to prevent partners in the deal from meddling in each other’s activities beyond the bounds of joint projects. Konstantin Simonov, the Director of the National Energy Security Foundation, comments.

Slamming the deal because of fears that it might compromise US national security is fairly strange. Among BP’s shareholders are the government of Qatar with two percent stock, and a Chinese company which owns one percent. And even though a five-percent stake seems more serious, as compared to two percent and one percent, it will never allow Rosneft to adopt strategic decisions concerning the company’s future. Besides, Rosneft is ready to cede three sections of the Arctic shelf. No one raised a scandal over that in Russia, whereas a small percentage of shares triggered hysteria in the US.

As it happens, the US cannot influence the deal, so the recent rhetoric is nothing but another anti-Russian move. This opinion belongs to a former President of  Shel, l John Hofmeister, who brushed away all fears in connection with the deal saying that what is taking place is “normal business” when both parties profit from the arrangements. Rosneft boosts the value of its assets and BP gets access to the oil and gas-rich Arctic shelf.

Experts say that it’s this very fact that set the US off. As two large companies join forces and come to share their potential, technology, capitals and even disaster handling experience, they are certain to establish a lasting presence in the Arctic region and pose a serious challenge to the US.

By Inessa Frolova

The Voice of Russia, January 19, 2011