Business | Oil & Gas
BP says Russian partners have earned $25.7b from venture
BP Plc said its partners in Russian oil producer TNK-BP have earned $25.7 billion since the company was founded five years ago, refuting claims of mismanagement.
- Bloomberg
- Published: 00:03 July 24, 2008
London: BP Plc said its partners in Russian oil producer TNK-BP have earned $25.7 billion since the company was founded five years ago, refuting claims of mismanagement.
Most of the gains in the fortunes of billionaires Len Blavatnik, Mikhail Fridman, German Khan and Viktor Vekselberg since 2003 have been due to TNK-BP asset sales, dividends and stock appreciation, according to an internal BP report obtained by Bloomberg News and confirmed by company spokesman Toby Odone.
AAR, the Russian group that unites shareholders Blavatnik's Access Industries, Fridman's and Khan's Alfa Group and Vekselberg's Renova Group, accuses London-based BP of hindering TNK-BP's expansion and causing its market value to lag behind rivals such as OAO Lukoil. AAR wants to fire Chief Executive Officer Robert Dudley, sell shares and take other measures it says will increase TNK-BP's value.
The average Russian would have to work more than 15 years "to receive what Vekselberg receives on average every hour," BP said in the report.
Moscow-based TNK-BP has paid $17.9 billion in cash to eight AAR owners, according to BP. Blavatnik and Vekselberg have each received about $4.5 billion, while Fridman and Khan have earned $3.3 billion and $2.1 billion, respectively. AAR CEO Stan Polovets couldn't be reached immediately for comment when Bloomberg News called his mobile phone yesterday.
Moscow-based magazine Finans ranked Fridman the fourth-richest Russian in February, with a fortune of $22.2 billion. Vekselberg was 9th at $15.5 billion, followed by Khan at $15 billion.
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