Reciprocity and Russia’s Integration
into the World Economy
by Tony Hayward
Group Chief Executive
BP
Much in Russia has changed for the better in the past two decades. Russia has
emerged from the Soviet era. Incomes and employment are rising rapidly, investment
is increasing and lives are being transformed.
One sector in particular has played a decisive role in that transformation:
oil and gas. As one of Russia’s biggest investors in that sector,
BP is proud to have participated in the march of progress. BP’s experiences
illustrate the possibility and reality of progress in Russia.
BP made its first investment in 1995 when we opened our first retail
outlet in Moscow. Today, TNK-BP and BP combined have more than 1,600 sites
across Russia and Ukraine. Our retail operations continue to be an excellent
investment for us, and when I recently met with President Vladimir Putin,
he told me that our retail sites in Moscow pay more tax than all their
competitors combined. In fact, the president clearly knew as much about
BP’s business in Russia as I did; I stopped being surprised by his
attention to detail some time ago.
The next phase in our investment came in 1997 when we acquired a minority
interest in Sidanco. And in 2003 TNK-BP was formed. It has thrived ever
since.
I would be misleading you if I claimed everything has always been sweetness
and light. It has not. There have been bumps in the road, but we continue
to make progress and we are in this for the long haul.
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