Putin supports TNK-BP sale plan

Igor Sechin, Rosneft's chief executive, told the Financial Times that Mr Putin endorsed the idea at a meeting in Russia last month with BP's top brass, which Mr Sechin also attended.

"[Rosneft] will have the opportunity to acquire a strategic investor," he said, "so we do support this, and the president also spoke in support of this." But Mr Putin stressed that it was ultimately "up to BP shareholders" to decide, he said.

Mr Sechin was speaking before BP's billionaire partners in TNK-BP said they wanted to sell their stake in the joint venture, creating fresh uncertainty about the ultimate fate of Russia's third-largest oil producer.

BP announced in June that it was pursuing a sale of its half of TNK-BP, calling time on a venture that has been plagued by corporate disputes between the UK oil group and its partners, a group of Soviet-born oligarchs known as AAR.

BP has been locked in talks on a sale with Rosneft and AAR. But analysts say that with its bigger balance sheet and close ties to the Kremlin, Rosneft will have the upper hand in any contest for the BP stake. AAR's plan to sell out appears to be an acknowledgment of that.

"If Rosneft prevails, we have to consider all eventualities, including a public offering or a sale," said Stan Polovets, chief executive of AAR. He said AAR would not sell if its offer for BP wins out or if BP ends up hanging on to its stake.

AAR could also struggle to raise sufficient funds for its bid. One person close to the situation said bankers were waiting for clarity on whether the Kremlin was backing Rosneft's bid before they decided whether to lend to the Russian partners.

"They figure that if they back AAR too openly, they might be politically exposed," the person said. "If Rosneft can prove it has political backing, the banks will be very hesitant, especially those already lending to Rosneft." 

Mr Sechin was speaking before a presentation in London that investors speculated was an attempt to burnish the company's credentials ahead of a potential deal with BP.

But his desire to acquire BP's holding potentially sets the scene for a clash between rival groups in the Russian government, each with sharply different views on the state's role in business.

Arkady Dvorkovich, Russia's deputy prime minister, said earlier this month that the state should not expand its presence in the economy "including through the acquisition of private companies by state ones".

Mr Sechin said Mr Putin had the last word. "Considering the fact that Rosneft is a strategic company ... the main parameters of the deal have to be agreed with the presidential administration," he said.

Mr Sechin said acquiring half of TNK-BP would be a good strategic fit for Rosneft, with the company's crude feeding into its many refineries both in Russia and continental Europe.

Also, some of the oil and gas properties that TNK-BP is developing ­ such as the Suzun and Tagul fields in Eastern Siberia ­ are close to Rosneft's operations, providing synergies for a combined group, he said.