Russian court dismisses $3 billion ruling against BP

1/24/2013

Russian court dismisses $3 billion ruling against BP

BY JAMES MARSON

MOSCOW -- A Russian court has dismissed a $3 billion damages ruling against BP and closed the case, a court official said, ending months of legal strife for the UK company as it finalizes a deal to sell out of its joint venture in the country and take a stake in oil giant Rosneft.

An arbitration court in the Siberian town of Omsk dismissed another court's ruling from last year ordering BP to pay just over $3.1 billion in damages to its Russian joint venture TNK-BP. That court had ruled in July that BP caused damage to TNK-BP and the interests of its minority shareholders when it sought an alliance last year with Rosneft in the Arctic exploration deal without involving TNK-BP.

The Omsk court, which was hearing BP's appeal, dismissed the case after the minority investors filed to withdraw the suit.

BP and its partners are selling TNK-BP to Rosneft in deals worth $55 billion after years of disagreements. BP will hold a 19.8% stake in Rosneft as part of its move to sell out of TNK-BP. The deals are expected to close in the first half of 2013.

Dow Jones Newswires

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