BP is pulling out of its Russian shareholdings amid the invasion of Ukraine, selling off US$14 billion worth of shares in Russian state-owned enterprise Rosneft - a 19.75% interest that meets the definition of what's known as 'significant influence', where BP would ordinarily have the power to participate in Rosneft's financial and operating policy decisions.

In an announcement on 27 February, BP's board of directors said that the company would be dropping its Rosneft holdings with immediate effect - it will no longer include its share of Rosneft income and assets in its results starting this quarter, which is expected to drop its earnings by at least US$2 billion and result in a writedown of at least US$25 billion - possibly more given rising oil prices. The board did not state whether they plan to sell the holdings, or simply write everything off.

BP CEO Bernard Looney has resigned from the Rosneft board of directors, and former CEO Bob Dudley is resigning as well.

Looney said that the situation in Ukraine has caused the BP board to "fundamentally rethink" the company's position with Rosneft. He added: "I am convinced that the decisions we have taken as a board are not only the right thing to do, but are also in the long-term interests of bp. Our immediate priority is caring for our great people in the region and we will do our utmost to support them."

In addition, BP is exiting several other joint ventures within Russia.

BP currently has 200 employees in Russia. The oil and gas supermajor, which says it is one of the biggest foreign investors in Russia, has a long history of operations in the region, almost since the end of the Cold War and the disintegration of the Soviet Union.

Image: BP announcement