July 2, 2022

The BP exit opens a new front in the West’s campaign against Russia

  • PP to exit $ 25 billion worth of Rosneft shares
  • Companies with Russian assets under pressure
  • Some Russian banks were shut down from SWIFT
  • The European Union, Canada and Britain closed the airspace for Russia

February 28 (Reuters) – BP has opened a new front in the West’s campaign to isolate Russia’s economy and decided to pull out of its Russian oil and gas investment, the most aggressive move ever by a company in response to Moscow’s invasion of Ukraine.

Western allies have stepped up efforts to punish Russia by closing its airspace to Russia, shutting down some banks from the SWIFT financial network and restricting Moscow’s use of $ 630 billion in foreign reserves. read more

The ruble fell to an all-time low of 30% against the dollar on Monday, prompting the central bank to double its key interest rate to 20%. read more

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PP, Russia’s largest foreign investor, has said it will drop its stake in state-owned energy company Rosneft. (ROSN.MM) At a cost of up to $ 25 billion, the British company halved its oil and gas reserves. read more

The move focuses on other Western companies operating in Russia, including BP’s rivals TotalEnergies in France. (TTEF.PA) And the Shell of Britain (SHEL.L), Amid mounting pressure from governments to tighten financial screws on Moscow after launching a major offensive against a European country after World War II. read more

Equinor (EQNR.OL), The Norwegian state-owned majority energy company, said on Monday it would launch its joint venture in Russia. Norway’s sovereign wealth fund, the world’s largest, will deduct its Russian assets and assets worth about 25 billion Norwegian crowns ($ 2.8 billion). read more

Australia’s sovereign property fund also said it planned to reduce its exposure to Russian-listed companies. read more

Of Limits

After the decision to cut off some banks from SWIFT, the secure messaging system used for trillions of dollars worth of transactions around the world, large parts of the Russian economy will become a no-go zone for Western banks and financial institutions.

Its leader said Sunday that even neutral Switzerland would follow the EU in imposing sanctions on Russia and freezing Russian assets. read more

The Russians lined up at ATMs over the weekend, worried that sanctions would trigger a cash crunch. read more

Western companies that exposed Russia also knocked. Shares in the Society General fell (SOGN.PA)French bank that owns Russia’s Rosebank and carmaker Renault (RENA.PA), Which controls the Russian carmaker Autovas. Finnare fell 21% after withdrawing guidance for 2022 due to the possibility of closing Russian airspace. read more

The European Union (EU) has banned Russian media outlets RT and Sputnik, while Canadian telecommunications operators have stopped providing the RT channel. Like Facebook, Google has banned RT and other Russian channels from paying for ads on websites, apps and YouTube videos. read more

European countries and Canada have taken unprecedented action to close their airspace to Russian aircraft. U.S. officials say the United States is considering a similar move.

Russia on Sunday said it was investigating Russian airline Aeroflot for violating its airspace. (AFLT.MM).

United Parcel Service Inc. is based in the United States (UPSN) And FedEx Corp. (FDX.N), Two of the world’s largest logistics companies, said they would suspend delivery services to Russia and Ukraine. read more

Asian Air Leaseholder BOC Aviation (2588.HK) EU sanctions to suspend leasing to Russian airlines by March 28 will affect most of its flights in Russia. Syria, an analysis firm, said 980 passenger jets were in service in Russia, 777 were leased and 515 were leased from foreign companies.

The EU’s head of internal markets told Google’s owner Alphabet’s chief executives (GOOGL.O) As part of its efforts to prevent misinformation about Ukraine, its YouTube section on Sunday banned users from inciting war propaganda.

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Report by Ron Bousso and Dmitry Zhdannikov in London, Fu Yun Sea in Brussels, Jamie Fried in Sydney; Written by Carmel Grimmins and Edmund Blair; Editing Grand McCauley

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