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

Feb 28 (Reuters) – BP opened a brand new entrance within the West’s marketing campaign to isolate Russia’s financial system by deciding to exit its Russian oil and gasoline investments, essentially the most aggressive transfer but by an organization in response to Moscow’s invasion of Ukraine.

Western allies have ramped up efforts to punish Russia by closing airspace to Russian plane, shutting out some banks from the SWIFT monetary community and limiting Moscow’s capacity to deploy its $630 billion overseas reserves, all measures which might be anticipated to hammer the financial system. learn extra

The rouble plunged as a lot as 30% to an all-time low in opposition to the greenback on Monday, prompting the central financial institution to greater than double its key rate of interest to twenty% to prop it up. learn extra

BP, Russia’s greatest overseas investor, mentioned it was abandoning its stake in state managed vitality agency Rosneft (ROSN.MM) at a price of as much as $25 billion, slicing the British firm’s oil and gasoline reserves in half. learn extra

The transfer places a highlight on different Western companies with operations in Russia, together with BP’s rivals similar to France’s TotalEnergies (TTEF.PA) and Britain’s Shell (SHEL.L), amid stress from governments to tighten the monetary screws on Moscow after it launched the largest assault on a European nation since World Conflict Two. learn extra

Equinor (EQNR.OL), the vitality agency majority owned by the Norwegian state, mentioned on Monday it will begin divesting its joint ventures in Russia. Norway’s sovereign wealth fund, the world’s largest, will even divest its Russian belongings, value round 25 billion Norwegian crowns ($2.8 billion). learn extra

Australia’s sovereign wealth fund additionally mentioned it deliberate to wind down its publicity to Russian-listed corporations. learn extra

OFF LIMITS

Giant elements of the Russian financial system will likely be a no-go zone for Western banks and monetary companies after the choice to chop a few of its banks off from SWIFT, a safe messaging system used for trillions of {dollars}’ value of transactions all over the world.

Even impartial Switzerland will doubtless observe the EU in imposing sanctions on Russia and freezing Russian belongings, its president mentioned on Sunday. learn extra

Russians queued at ATMs over the weekend fearful that sanctions would set off money shortages. learn extra

Western corporations with publicity to Russia additionally took a knock. Shares fell in Societe Generale (SOGN.PA), the French financial institution that owns Russia’s Rosbank, and carmaker Renault (RENA.PA), which controls Russian carmaker Avtovaz. Finnair tumbled 21% after it withdrew steering for 2022 because of the potential closure of Russian airspace. learn extra

The EU has banned Russian media retailers RT and Sputnik, whereas Canadian telecoms operators additionally stopped providing the RT channel. Google has barred RT and different Russian channels from receiving cash for adverts on web sites, apps and YouTube movies, just like a transfer by Fb. learn extra

European nations and Canada additionally took the unprecedented step of shutting their airspace to Russian plane. America was contemplating the same transfer, U.S. officers mentioned.

Canada mentioned on Sunday it was investigating a violation of its airspace by Russian airline Aeroflot (AFLT.MM).

U.S.-based United Parcel Service Inc (UPS.N) and FedEx Corp (FDX.N), two of the world’s largest logistics corporations, mentioned they had been halting supply companies to Russia and Ukraine. learn extra

Asian plane lessor BOC Aviation (2588.HK) mentioned EU sanctions requiring the termination of leases to Russian airways by March 28 would have an effect on most of its plane in Russia. Russia has 980 passenger jets in service, with 777 leased and 515 rented from overseas companies, analytics agency Cirium mentioned.

The European Union’s inner market chief informed the chief executives of Google-owner Alphabet (GOOGL.O) and its YouTube unit on Sunday to ban customers pushing conflict propaganda as a part of measures to halt disinformation on Ukraine.

Reporting by Ron Bousso and Dmitry Zhdannikov in London, Foo Yun Chee in Brussels, Jamie Freed in Sydney; Writing by Carmel Crimmins and Edmund Blair; Modifying by Grant McCool

Our Requirements: The Thomson Reuters Belief Ideas.