BP/Rosneft: Russian insurance

Why would BP want to buy a stake in Rosneft? The UK giant is understood to be one of the strategic investors mulling an investment in the Russian oil firm’s initial public offering, according to people familiar with the situation. At first glance, it looks bizarre. Rosneft’s stock is widely thought to be overpriced. The Russian state has prohibited foreign investors from buying more than 2%, so there is little chance of BP gaining real influence. And there’s a reputational cost. Rosneft’s IPO i...