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It seems BP plc is learning the hard way an eventuality Rupert Murdoch warned about last month.
In August, the media mogul told the Financial Times that he does not like the investment climate in Russia and that he is worried about keeping his businesses there. "The more I read about investments in Russia, the less I like the feel of it," Murdoch told the FT. "The more successful we'd have been, the more vulnerable we'd be to having it stolen from us. Better we sell now." BP's Russian joint venture TNK-BP plc exemplfies what Murdoch warned against. While BP hasn't entirely lost control of the business, it's role has eroded considerably now that it finally bowed to pressure Thursday from its Russian partners by agreeing to replace Robert Dudley with a Russian-speaking CEO. Dudley's ouster was part of a greater board overhaul at the venture. Additionally, the overhaul includes plans to eventually float 20% of the venture's shares, which could lead to a further erosion of BP's control -- especially if those shares primarily are sold to Russian investors. It could just be a matter of time before BP is ousted from the venture. - Matthew Wurtzel See Dealscape: Investors eye BP's Russian retreatSee Corporate Dealmaker: The geopolitics of resource megamergers See Corporate Dealmaker: Why are joint ventures such magnets for trouble? See Corporate Dealmaker: Battle for TNK-BP continues as CFO resigns See Corporate Dealmaker: BP to Russian JV partners: No sale Categories Deal Video
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