Ed Sheeran weaves Persian music into new song, Azizam    Rain expected in Makkah and Jeddah on Saturday    Al-Jadaan: Crown Prince's directives confirm government's ability to bring back balance to real estate market    China retaliates against Trump's trade war with 34% reciprocal tariffs on US goods    Saudi Arabia condemns Israeli escalation, targeting of civilians and Saudi warehouse in Gaza    Danish PM dismisses US desire to annex Greenland 'You cannot annex another country'    Macron lashes out against Trump's 'brutal' tariffs, calls for a pause in investment    Saudi Crown Prince, Iranian president discuss regional developments in Eid phone call    Veteran Bollywood actor Manoj Kumar dies at 87    New Laws of Commercial Registration and Trade Names take effect on Thursday    New fleet of 76 public transport buses starts operation in Jeddah on Tuesday Environmentally friendly electric buses introduced for first time    Foreign investors are allowed to engage in real estate business outside Makkah and Madinah Commercial speculation should not be the purpose of real estate transaction    Aubameyang fires Al Qadsiah into King's Cup final with stoppage-time winner over Al Raed    Cristiano Ronaldo joins Fatal Fury: City of the Wolves    Musk's X is suing India, as Tesla and Starlink plan entry    Tesla sales plunge after backlash against Elon Musk    Swedish table tennis legend Jörgen Persson appointed head coach of Saudi national team    Danilo Pereira fires Al Ittihad into King's Cup final with dramatic stoppage-time double    Screen time in bed linked to insomnia, study finds    Mexico bans junk food in schools to fight childhood obesity epidemic    Sweet sales surge ahead of Eid as Saudi chocolate imports top 123 million kg in 2024    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    King Salman prays for peace and stability for Palestinians in Ramadan message King reaffirms Saudi Arabia's commitment to serving the Two Holy Mosques and pilgrims    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



BP deal shows UK, Russia keen to do business
Published in Saudi Press Agency on 16 - 01 - 2011

BP Plc's ambitious energy exploration deal in the Russian Arctic shows London and Moscow are determined to boost their business ties despite persistent tension over the 2006 killing of a Kremlin critic in Britain, according to Reuters.
BP and Russia's state-controlled Rosneft agreed to a share swap on Friday under which they plan to explore jointly a huge offshore area that BP says may contain billions of barrels of oil and gas.
The deal gives the British oil major, rocked by last year's Gulf of Mexico oil spill disaster, access to coveted areas of the Arctic previously reserved for Russian oil companies.
The partnership has the backing of both governments, showing London and Moscow are not letting diplomatic tensions interfere with business.
The 2006 murder of former Russian agent Alexander Litvinenko, killed in London by a rare radioactive isotope, and Russia's refusal to extradite a suspect in the case, have cast a long shadow over relations between the two countries.
Britain's coalition government, which took office last May, has said the door is open to better ties, while sticking to its demand for the extradition of former KGB bodyguard Andrei Lugovoy to stand trial for Litvinenko's murder. Lugovoy denies involvement.
"You are seeing a sort of recalibration of the relationship, even if some of the fundamental difficulties haven't been resolved," Richard Whitman, politics professor at Bath University, told Reuters.
Moscow and London had an "agreement to disagree" on the Litvinenko dispute, keeping it apart from other important areas of their relationship, such as business, he said.
U.S. CONCERNS
On the downside, Britain runs the risk that BP's Russian deal could irritate its closest ally, the United States.
At least two American lawmakers have called for the deal to be examined by U.S. regulators to see if it affects U.S. national and economic security. But the U.S. administration has said nothing publicly so far.
The deal has also been attacked by environmental groups.
British companies accounted for $19.4 billion of the $262.6 billion foreign investment Russia has attracted since the 1991 fall of the Soviet Union, making Britain the fifth largest investor after Cyprus, the Netherlands, Luxembourg and Germany.
Over 1,000 British businesses have a base in Russia, the largest investor already being BP through its TNK-BP joint venture. For Russian companies, London is the traditional venue for selling billions of dollars of stocks and bonds.
Russia has had a troubled relationship with foreign oil groups in the past, including with BP.
But it needs BP's deepwater drilling expertise while Britain recognises the importance of Russia's energy supplies at a time of scarce reserves and soaring prices.
"Russia is centrally important to global energy with nearly a fifth of the world's daily gas production and about 13 percent of today's oil production. So this initiative ... is good news for Europe, for the UK's energy security and worldwide," British Energy Secretary Chris Huhne said on Friday.
The deal, which gives Rosneft a five percent stake in BP, was the second major British energy deal involving an emerging market in a week after Chinese oil giant PetroChina agreed to buy a stake in two refineries in France and Scotland owned by British firm INEOS .
FOCUS ON BRICs
The Conservative-Liberal Democrat government, trying to foster Britain's recovery from a deep recession, has made increasing trade with key emerging markets, particularly the BRIC countries (Brazil, Russia, India, China), a priority.
Prime Minister David Cameron led business delegations to India and China last year and plans to visit Russia this year.
The Litvinenko row led to London and Moscow expelling diplomats in July 2007. Britain halted talks on easing visa rules and Russia stopped the British Council, the British government's cultural arm, from operating in two Russian cities.
Spy scandals continue to dog the relationship of the former Cold War adversaries. Only last month Britain said it had expelled a diplomat from Russia's embassy in London for espionage and that Russia had responded in kind.
Britain angered Moscow last month by moving to deport a Russian aide to a British member of parliament. A British press report said the aide was detained on suspicion of spying.
Russia also resents Britain granting refugee status to several high-profile Kremlin critics.
Despite the problems, Alexander Sternik, Russia's charge d'affaires in London, told reporters in December that Moscow looked optimistically to the future and was keen to develop Russian cooperation with Britain in 2011.


Clic here to read the story from its source.