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EU voices TNK-BP fears


News wires

The European Union raised the issue of BP's troubled Russian joint venture TNK-BP at a summit meeting today and "made a very strong point", EU External Affairs Commissioner Benita Ferrero-Waldner said.

Ferrero-Waldner told Reuters the EU had raised the issue as a matter of investor confidence in Russia and asked Russia to reconsider restrictions on visas for foreigners working for TNK-BP.

"The issue was raised in general terms ... on security of investment," Ferrero-Waldner told Reuters after the talks between EU commissioners and Russian leaders.

"We also raised the question, together with that, of work permits. I think it's important the Russian side sees that maybe the quotas could be more in the future and I think this has been acknowledged".

The oil company, jointly owned by oil giant BP and a group of four Russian billionaire businessmen, has been mired in a bitter dispute for management control and its future ownership structure.

BP has complained at a series of investigations on tax and labour issues by Russian authorities and called for an easing of restrictions that have blocked some foreign employees from working with the firm.

The Russian co-owners have in turn accused BP of illegally trying to secure control over the company and demanded TNK-BP's chief executive Robert Dudley resign, accusing him of poor performance and favouritism towards BP.

Ferrero-Waldner is due to meet Russian deputy Prime Minister Igor Sechin tomorrow in Khanty-Mansiysk.

TNK-BP was discussed when they met recently, but Ferrero-Waldner said she did not know if they would return to the issue again.

"I brought it up the other time. We have to see. I spoke about it three weeks ago."

An EU official said their lunchtime meeting was intended to be a social engagement, following an invitation from Sechin.

President Dmitry Medvedev told Reuters in an interview this week the state should not interfere in corporate conflicts and slammed attempts by private shareholders to resolve their disputes with the help of the state.


Friday, 27 June, 2008, 11:49 GMT  | last updated: Friday, 27 June, 2008, 13:40 GMT

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