Russian Government Could Block Rosneft-TNK-BP Acquisition

The Russian government could block an attempt by Rosneft to take over BP's stake in TNK-BP, it was revealed today in comments from Russian Deputy Prime Minister Arkady Dvorkovich.

In an interview with Russian financial newspaper Vedomosti, the Deputy PM said that the government had not yet discussed the possibility of the acquisition with Rosneft but said that he could see no advantage to the deal taking place.

"Overall, it serves no useful purpose for any state company to expand its role in the economy," Reuters reports him as saying in the interview.

BP was reported to be in talks with Rosneft for BP's 50 per cent stake in TNK-BP in July of this year. BP had previously announced in June that it was withdrawing from the joint venture it shares with Alfa Access Renova (AAR) following unsolicited interest in the stake. 

However, Minister Dvorkovich questioned today how Rosneft would raise the funds required to acquire the TNK-BP stake and said that any deal between Rosneft and BP would be contingent on the government's sanction.

"This purchase won't happen without the government's approval," he said. "You don't find $30 billion lying around on the street. This means we have to see how the money would be raised, how quickly it is returned in the form of TNK-BP dividends, how it would affect Rosneft's financial situation, and whether it would bring other projects to a halt."