UK supermajor BP has become the first international oil company to sign agreements with Russia’s state-controlled Rosneft in the face of US and European sanctions imposed on the country last year.

BP will reportedly pay $750 million to debt-ridden Rosneft to buy its 20% stake in oil and gas company Taas-Yuriyakhneftegazdobycha.

Taas-Yuriyakh operates the Middle Botuobinskoye oil and condensate field in the republic of Sakha-Yakutia in East Siberia which holds estimated recoverable reserves of almost 1 billion barrels of oil and is currently producing 20,000 barrels per day.