Darling Warns Russians to Keep Hands Off UK Oil Firms

By MARK WILLIAMSON

A SENIOR member of Tony Blair’s Cabinet told Russian authorities to keep their hands off UK oil firms and warned the country’s giant Gazprom against trying to buy control of Britain’s gas markets.

Industry Minister Alistair Darling said he had urged Russian ministers to respect the sanctity of foreign investments and had raised concerns about the treatment of BP and Shell’s ventures in the country.

Speaking in Moscow, Darling said: “I made it very clear that British companies coming here need to have legal certainty and need to know where they stand.”

The remarks come weeks after Shell agreed to cede control of 50per cent of the Sakhalin 2 gas project in Siberia to Gazprom, for dollars-7.45bn (GBP3.8bn), following months of pressure from regulators.

Many industry watchers feared this was a pretext for Shell to hand over control.

Some suspect that Russian investors who are partners with BP in the TNK-BP venture in the country have been under pressure to sell their stakes to Gazprom.

Darling said he had discussed BP’s investment in TNK-BP on Wednesday, when he met the finance, economy and energy ministers.

“There was an initial backlash following Sakhalin and they (the Russians) are aware of that, ” he said, in comments that suggest he tried to impress upon Russia that action damaging UK firms could backfire.

“What we have said is people are now apprehensive, and it would be far better if these matters were settled in accordance with established laws.”

Following admissions by Gazprom that it was interested in buying UK gas firms, including Centrica, Darling indicated the UKwould take a dim view of moves to buy distribution businesses that were intended to increase dependence on Russian gas.

He noted Gazprom had not made a formal move on Centrica, which owns British Gas. But he said any bid would have to have a commercial justification, not a political one.

“We welcome investment from overseas, but you’ve got to play by the rules . . . Politics and commerce don’t mix.”

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