The planned $16bn (£10bn) share-swap with Rosneft was judged to be a violation of the original executive shareholder agreement governing BP's future exploration activities within Russia.
The agreement effectively gave the TNK partners a ‘first refusal' to get on board with BP on any new energy projects, which explains why the oligarchs that make up the TNK component were less then enamoured when Vladamir Putin originally announced the Rosneft deal in January.
Without access to the executive shareholder agreement it's difficult to determine just how explicit the terms of the TNK-BP joint venture actually were, but a Swedish panel was obviously in no doubt.
Although this is the latest in a series of contractual spats between the joint venture partners, shareholders in BP would be justified in questioning chief executive Bob Dudley's judgement in this matter - especially given that he acted as president and chief executive of TNK-BP for five years from 2003.
Full story BP-Rosneft tie-up scuppered - Investors' Chronicle
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