Rosneft to buy out minority shareholders in TNK-BP

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Associated Press

Posted on September 27, 2013 at 9:00 AM

Updated Friday, Sep 27 at 9:00 AM

MOSCOW (AP) — The chief executive of Russian state-owned oil giant Rosneft says the company will offer to buy out minority shareholders in oil firm TNK-BP.

TNK-BP, Russia's third-largest oil company, was taken over by Rosneft last year. Since the deal, international minority investors holding some 5 percent in TNK-BP have been left in limbo and unable to find other buyers for their stakes.

Speaking at an investment conference in Sochi, Prime Minister Dmitry Medvedev floated the idea. Rosneft CEO Igor Sechin, who was at the same event, agreed, although he noted that Rosneft "had no legal obligations."

Shares in TNK-BP soared 11 percent on the announcement.

Foreign investors have been citing the case of the TNK-BP investors as an example of bad corporate governance in Russia.

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