Insight - BP’s decision shows disruption will be profound

Severing ties: The Rosneft headquarters in Moscow. BP says it is exiting its share in Rosneft, a state-owned Russian oil and gas company. — AP

BRITISH Petroleum’s (BP) decision to abandon its stake in oil giant Rosneft is the first high-profile example of the self-sanctioning by companies of their business links to Russia, a process likely to have major short- and long-term implications for energy markets.

BP’s dramatic exit of its 19.75% share of Rosneft could cost the London-listed oil major as much as US$25bil (RM105bil), a hefty price to pay in order to be seen to be doing the right thing in response to Russia’s invasion of neighbouring Ukraine.