BP and AAR declare peace

BP and former partner AAR said yesterday they have agreed to settle their differences over Russian joint venture TNK-BP.

It is understood that AAR, run by four Russian billionaires, and BP have settled all disputes, including arbitration, in exchange for what is thought to be a $325m (£205m) payoff by the British oil major. Both sides agreed last month to exit joint venture TNK-BP, agreeing separately to sell their 50 per cent stakes to Rosneft in a $55bn takeover.

BP last month sold its stake in TNK-BP in a deal worth $27bn that will see the firm take an almost 20 per cent stake in Rosneft.

Yesterday’s deal means that BP is now free to explore further opportunities in Russia and the Ukraine. Both companies said they will work “constructively” with one another and Rosneft.