BP reviews investment in Russia

BP AMOCO is reviewing its business position in Russia in the light of the enforced sale of an oil company in which it had a stake. Russia's Tyumen Oil Company yesterday bought bankrupt oil company Chernogorneft for about $176m (pounds 110m) against the wishes of its owners, which include BP Amoco, the European Bank for Reconstruction and Development and the Soros Foundation.

The sale was seen as a test case for determining the future of foreign investment in Russia. BP Amoco said that Chernogorneft and Sidanko, its parent company of which BP Amoco owns 10 per cent, are viable businesses whose debt could be restructured. The oil giant has fought all year to protect its investment since Sidanko was sued for bankruptcy in January. Many potential foreign investors take the view that if a large international company such as BP Amoco cannot make a success of investing in Russia, others are unlikely to do better.