Russians warn of tax implications for TNK-BP

The Russian billionaires fighting BP for control of
TNK-BP have warned of
serious tax implications as a result of the decision by Robert Dudley, the joint
venture’s chief executive, to leave the country and run the business from

Dudley reportedly left Russia last week for a secret location, but the
Russians believe he has set up office in London, and have demanded that BP
confirm if this is true, according to The Daily Telegraph.

In a letter sent to BP representatives, the Russians said they had taken
advice from auditors PwC and would pursue Dudley and the UK company for
compensation if necessary.

Stan Polovets, chief executive of AAR, BP’s Russian 50:50 joint venture
partner, wrote yesterday to Alastair Graham, head of BP Russian Investment,
warning: ‘We are deeply alarmed that if the centre of TNK-BP’s management and
decision-making is transferred to a country other than Russia [then TNK-BP] may
become liable for the payment of profits tax or other taxes in that country.’

Further reading:

Russian taxman swoops on TNK-BP books

The Daily Telegraph story

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