Business | Oil & Gas
Russia to question TNK-BP chief in tax evasion probe
Russia will question the chief executive of oil major BP's Russian venture as part of a probe into tax evasion at a unit of the embattled company, which many analysts expect to fall under the control of a state firm.
- Reuters
- Published: 00:11 June 6, 2008
Moscow: Russia will question the chief executive of oil major BP's Russian venture as part of a probe into tax evasion at a unit of the embattled company, which many analysts expect to fall under the control of a state firm.
TNK-BP said in a statement yesterday that a local Interior Ministry department has issued a summons to TNK-BP chief executive Robert Dudley as part of a tax probe into TNK's activities in 2001-2003.
People with knowledge of the situation said the authorities plan to question Dudley next week in a case seen as a test for investment in Russia under new President Dmitry Medvedev.
"This is exactly the kind of issue that is making Medvedev's life so difficult as he tries to rebrand Russia as an attractive investment location," said Chris Weafer, chief strategist at Moscow-based investment bank UralSib.
"The fate of TNK-BP is a major test for how the government views the investment climate."
Mounting pressure
Mounting pressure on TNK-BP, Russia's third-largest oil producer, points to the likelihood the firm will have to sell a stake to a state firm such as Gazprom, analysts have said.
Dudley's summons come on top of other problems at the firm, including the arrest of a TNK-BP employee on an industrial espionage charge, a raid on the company's central Moscow offices and a court injunction to stop it using BP specialists.
"We confirm the information that Robert Dudley has received a summons to the Investigative division of the Main Department of the Ministry of Interior in the Central Federal Region," TNK-BP said yesterday.
"Mr Dudley has been requested for questioning with regard to tax matters pertaining to OAO TNK activities in 2001-2003. We regard this event as a routine procedural matter which is not connected with current shareholders' discussions."
Dudley never worked at TNK, but became the head of TNK-BP in 2003, when the 50-50 joint venture between BP and a group of Russian billionaires was formed.
A source told Reuters that the questioning is likely to be next week.
"The questioning was planned for this week, but for some reason they have postponed it to early next week," the source said. A BP source said Dudley had already been quizzed over the failure of some employees to complete health and safety courses.
A source in the Interior Ministry said an investigation was under way, but declined to give details. A ministry spokesman could not be reached, and a TNK-BP spokeswoman declined comment.
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