Prioritizing The Anti-Corruption Drive

July 2008 | Risk Summary

The Russian government has tightened its restrictions on TNK-BP a joint-venture oil company controlled by British energy giant BP . Moscow has refused work permits for dozens of the firm's foreign executives based in Moscow, effectively forcing them to leave the country by the end of July. Even TNK-BP's CEO and CFO are expected to have to leave Russia, severely impairing the firm's ability to operate through the short term. The government's ongoing ructions with TNK-BP are reflective of the Kremlin's increasing desire to raise its control of the domestic oil sector. We highlight our core view, that further restrictions on foreign energy firms can be expected going forward, though we stress that government corporate interference is likely to remain restricted to the energy sector.

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