THE TELEGRAPH: Russian President Dmitry Medvedev has expressed concerns that the massive Gulf of Mexico oil spill could lead to the "annihilation" of BP.
Mr Medvedev stopped short of saying the disaster would prompt a review of Russia's partnership with BP, but he said: "This is a wake-up call."
"Certainly, we are not indifferent to their future... Hopefully, they can absorb the losses," he told the Wall Street Journal.
BP shares, which have fallen around 46pc since the spill began, rose 4.5pc in early tradiing on Friday.
BP is present in Russia through TNK-BP, the third largest oil producer in the country, accounting for roughly a quarter of BP's global production. It owns half of TNK-BP and the other half is owned by Alfa Access-Renova, a consortium of Russian businessmen.
When asked how the oil spill would affect Russia's view of BP as a partner, he said: "What I know is that BP will have to pay a lot of money this year.
"Whether the company can digest those expenditures, whether they will lead to the annihilation of the company or its breakup into pieces is a matter of expediency."
Mr Medvedev's comment come as estimates of the damage caused by the US's biggest environmental accident spiral[.] >>> | Friday, June 18, 2010
THE WALL STREET JOURNAL: ST. PETERSBURG, Russia—Russian President Dmitry Medvedev expressed doubts about the future of Europe's common currency and said the Gulf of Mexico oil spill could threaten the survival of BP PLC.
Asked whether Europe's debt turmoil could threaten the euro, Mr. Medvedev said, "I don't exaggerate the threat, but it can't be underestimated."
The Russian president didn't rule out financial assistance to struggling European nations, but said the European Union should bear the burden of any major "financial injections."
"Russia's prosperity, to a large extent, depends on how well things are going on the European continent," Mr. Medvedev said in an interview with The Wall Street Journal. "We are not a member of the EU, but we are a European country."
On the eve of his first state visit to the U.S. next week, Mr. Medvedev also questioned whether the Gulf oil spill might lead to the "annihilation" or breakup of BP, as the company faces billions of dollars in losses from the disaster.
He stopped short of saying Russia would re-evaluate BP's lucrative partnership in Russia, which represents almost a quarter of its oil production, but predicted the spill will prompt a fundamental rethinking of oil exploration around the world.
"This is a wake-up call," Mr. Medvedev said. Of BP's fate, he added: "Certainly, we are not indifferent to their future. ... Hopefully, they can absorb the losses." >>> Gregory L. White, Robert Thomson, and Rebecca Blumenstein | Friday, June 18, 2010
