[A-List] BP watch: UK state's each-way bet on Iraq

["Michael Keaney" <michael.keaney@xxxxxx>]

Prime minister argues case for 'Blair Petroleum'

Terry Macalister
Thursday February 13, 2003
The Guardian

The prime minister, Tony Blair and Russian president Vladimir Putin were
closely involved in the signing of this week's groundbreaking deal between
BP and TNK.

The successful conclusion of the merger helped to heal memories of a dispute
which opened up when Mr Blair personally intervened in a wrangle BP was
having in Russia.

All of this underlines the close links between Big Oil and politics, while
confirming more particularly the way Mr Blair and BP have a working
arrangement that has led to the company being dubbed "Blair Petroleum".

A Downing Street spokesman confirmed that Mr Blair had discussed the $6.75bn
(£4.2bn) merger move by BP - the biggest foreign investment in Russia's
history.

"Since the first meeting between the two men in St Petersburg in 2000 they
have both been committed to forging closer and more successful business
links between Britain and Russia so it is not surprising that this deal was
discussed," he said.

More surprising to many observers was that Mr Blair wrote a personal letter
just over three years ago to Russian president Vladimir Putin arguing the
case of BP when it was mired in a legal battle over Sidanco with the same
Alfa Group it now calls a partner.

Mr Blair, in the letter to Mr Putin, describes BP's assets as "an important
British interest in Russia" and claims BP has a "global reputation for
integrity". He points out he is taking a "close personal interest" in the
dispute and ends the letter, dated September 7 1999, warning: "The case is
being closely followed by other major foreign investors in Russia and will
be critical to future in-flows of foreign direct investment, so vital to
Russian economic revival."

BP declined to say whether it had asked Mr Blair to intervene. "You will
have to ask Number 10 why they sent it," said a company spokesman.