rosneft deal go through how might it affect your corporation over the last nafta. or partnership and rosen if partnership with b.p. are very different projects which are not connected and they're economically family logically or politically when we're talking about cooperation with rosen left we're not talking about exclusive partnerships but about corporation on concrete projects and you may finally resolve this dispute with its russian oil partners he says it's ready to sell its stake in the joint venture there one of the partners in the consortium of germans fifty percent of the says the sale will be possible if they're offered a good price he wants to buy out his russian partners after the british share swap and i think exploration deal with rosneft earlier if you use the piece twenty seven billion dollars often suggest that the price should be forty billion dollars. yes that's what the forty billion dollars stake it's a sixty percent premium to the company's current market rates that's too much but i think thirty billion dollars is more realistic however given

well know really still between rosneft down b.p. has it many stumbling blocks throughout its generation is processing it was still of course. to get official ruling from the from the arbitrators on whether the deal would inflict upon the the right hold b.p. official partner in russia to you until you do you create and we're hearing today that b.p. are planning to just to be either parent company that's being reported in the british press as well as in the business media here in russia or there are probably seeking around ten billion dollars in compensation should this deal go ahead. peter all of the reporting there live he said many thanks indeed. also a german truck maker. and is expected to announce a plan to launch production in russia st petersburg the investment agreement between me and the region's officials is expected to be signed later this week and they say the plant is likely to assemble the tracks and use a great existing infrastructure with the hope of a point start to production. markets now japanese stocks have fallen

rosneft deal go through how much does affect your corporation of the austin after. it will in fact it our partnership and rosen if partnership with b.p. are very different projects which are not connected now they're economically technologically or politically when we're talking about cooperation with rosemary we're not. talking about exclusive partnership but you buy cooperation on concrete projects if you put it on a particular the interviewing the president of luke world's most of the markets u.s. markets opened makes them flat that's after the commerce department reported who does for durable goods in march climbing to an hour percent this is a good consecutive month investors are waiting for the federal open market committee a news conference by fed chairman ben bernanke so far the dow was up zero point one percent the nasdaq by just north european markets ended the session also mixed flat for the footsie and up point seven percent for the dax the boost the buy strong endings results in ericsson and then automakers shares are on the rise across europe with gati

rosneft deal goes through how might it affect your corporation over the last now. it will intercept it our partnership rose naifs partnership with b.p. are very different projects which are not connected they're economically thing a lotion plea or politically when we're talking about cooperation with those nafta we're not. talking about exclusive partnerships that's about cooperation and concrete projects are you believe he may finally resolve this dispute with its russian oil partners s t n k b p says it's ready to sell its stake in the joint venture up next to the banks and dad of one of the partners in the consortium which owns fifty percent of the m.k. b.p. says the sale will be possible if they're offered a good price he wants to buy out his russian partners after they are lucky the british share swap an article expiration deal with rosneft had earlier refused b.p.'s twenty seven billion dollar often suggested the price should be forty billion dollars. yes that's not the billion dollars stake it's a sixty percent premium to the company's current market greece

minister in a second has decided to step down as trying to have a country state run well made for rosneft he's the first to fall the presidential order that top official said leave the board stay companies are all over of course from the headquarters here in moscow. they go to such an announce to snip shareholders that he will step down as the head of the company no this is due to a presidential ruling here in russia it says that no government official can also hold a position on the board of a major company i was the surgeon is also the deputy prime minister here which means he has to step down from the position as the head of rosneft no old though they have known that this was going to happen it was expected but a presidential ruling only came in around two weeks ago so it hasn't given much time to to settle in for rosneft this because it could cause some uncertainty surrounding the sixteen billion dollars share swap deal between left and b p now this deal hasn't had many many snags in the past t.n. k p p p p's russian partners at the moment to try to oppose it at every turn and they've

also said that they they turned down a bit from t n k p p to buy into rosneft and said that. the deal would only be with b.p. it was b.p. all with nobody they ruled out any possibility of a deal with like shell so it's basically b.p. all nobody but as we said in the past this deal too big to be allowed to fall by the wayside so people are going to have to get their well get into some hard negotiations with the russian shareholders with their russian partners in order to come to an agreement so that all that exploration deal in the arctic can be done between b.p. and ross left great stuff all right peter all of the reporting there live from or else you have had called a speech to many thanks indeed. you. and turns an oil products might have to rise in russia global crude prices continue to spike and to minister sergei shmuck of course that's why it may be needed to avoid a fuel deficit at home the price for a year old screwed blend has john fourteen percent over last month but they are all price means that smoke forced companies to export refined products such as petrol and je

s not taking a majority position in rosneft noreaster often i think b.p. normally investment from any mutual fund or head fund or personally investor of around five percent it's normal so there's no reason why it shouldn't be now it depends on how they interpret the law and whether they believe that maybe the share swap should be. a later time until the whole deal being either postponed or canceled but from the point of view of an investor i think b.p. east free to invest in any other company that is not an operational deal so therefore it should go ahead but they've got a fifty fifty chance and we'll find out piece week whether he goes through or not. that really prime minister is going to set in one of the principal architects of that new york could soon be forced out of his position as chairman of the rostam board that's after the machine had better have signed a new order that prohibits ministers and other senior officials from being on the boards of major state owned companies and settle of seventeen russian firms they're on the restricted list they w

be concentrated over either the gas rondell when we're talking about nature on bass exploration or rosneft if as much as field exploration is concerned ok the head of research at north capitol thank you so much for your comments thank you and i'm afraid that's all we have time for in this edition of business he will be back in fifty five minutes time with nothing join us. closeup team has been to the chilean inspiration for the long lost secret of dumbest steel it's been discovered. now archie goes east of lake baikal with the longest russian railway line runs. for the sunday desert lies m m siberian mountains. for people full of the same routes as hundreds of years ago. welcome to the translight. russian flows of the party.

higher world prices banking stocks are also on the downside more details now on those stocks and rosneft is one of the biggest losers down more than two percent despite high oil prices as we mentioned these c b is also down despite posting record high annual profits have more on that in just a second and gas problem is also down point six percent or better than markets. russia's second largest lead the b.c.b.s. posted a record high net profit of two billion dollars last year that's against a two point one billion dollars net loss in two thousand and nine analysts say the result which appeared to be above expectations was supposes by business growth and cutting allocations to raise the funds target moves the chief financial officer b.c.b. also reveals the bank is embarking on a new dividend strategy because we have this. side it that way for it to be will be . and based on its. earnings so the international standards the group results the russian standard are standard on results and we will be in a range between ten to twenty percent of our consolidated i.r. for us profits going forward f

taking over rosneft just it's just alliance like they exist everywhere else it shows that they can work together for the benefit of the advantage of both parties it's definitely in no way you know takeover attempt on i part you could argue the same thing you know why would you allowed rosneft to have five percent of b.p. they could take over b.p. they're a much bigger company but i think when you operate with somebody you know there we stress release professionalism. and you do you know there's no need to add more to the pile it is what it is it's a business deal nothing more. ok thanks very much christine just ground from status and power thanks for your time i'll just remind you that we have a report that b.p. is trying to buy out russian partners in according to recent reports on the financial times thanks very much. now let's move on let's look at the markets oil prices at least slightly amid reports that levy and leader moammar gadhafi has accepted a peace plan to end the conflict in the country brant crude is trading slightly below one hundred twenty six dollars a barrel while the

and rosneft is damaging to its interests as a fifty percent partner in g.m. kerry and you know either wanted to be closer into the deal or i suppose once to be taking out a fair price and we certainly been hearing over the last couple of weeks that the causations have centered about around what valuation. and. a stake in t. and k. it can be ok or what values could be applied to that for some sort of an exit and that seems to be the sticking point right do you think ego sections of resignation section is russia's deputy prime minister he's stepping down would make any difference not materially in my opinion because mr such and is the deputy prime minister but he's in charge of russia's energy sector so he still is the overall person in charge of you know of energy negotiations and as a say this b.p. rosner deal is very much in russia's strategic industries so his office will be heavily involved in you know those negotiations regardless of his position in rosneft or not and i would imagine given that we've now come to you know the people and or the critical poi

the what are they trying to achieve are they actually trying to block this deal between rosneft or they negotiating some kind of you. it's difficult to say because they also have a lot of problems with their other businesses in russia so why are they doing these to distract we don't know are they doing these because they're trying to get money out of b.p. for that they can finance or other deals we don't know are they doing these us a way of telling the russian government you know we can be a big headache if you don't allow us to do this all the deals or are they just simply saying we're going to give dudley a hell of a time it's impossible to say but it's ridiculous for them to expect lead he to work with them on offshore exploration which is incredibly difficult there are only a couple of maybe four or five companies around the world that can do that and b.p.'s one of them so we will have to wait and see what happens it's a pic taken from someone of investors point of view well the b.p. shares are already down this is a stumbling block even though their production in that of which is

s proposed sixteen billion dollars shares what do you with russian states and rosneft claims of your breaches of shareholder agreement with b.p. which says t m k b p should be its primary vehicle for all exploration in russia and ukraine christine just corrino from standard and poor's believes it's a fifty fifty chance whether the court will block the assets or between what. companies are allowed to invest in other companies and we please not taking a majority position in rosneft nor'easter off anything b.p. a normal investment for a mean mutual fund or head fund or personally investor of around five percent it's normal so there's no reason why it shouldn't be now it depends on how they interpret the law and whether they believe that mean the share swap should be. a later time until the whole deal has been either postponed or canceled but from the point of view of any investor i think b.p. is free to invest in any other company that is not an operational deal so therefore it should go ahead but they've got a fifty fifty chance and we'll find out this week where it goes through or not

up with us all important to their russian partners so that they can go ahead and do that deal with rosneft and explore for oil in the arctic. morning from. asco export tax on oil products may have to rise in russia if global crude prices continue to spike energy minister says high tires may be needed to avoid a fuel deficit at home the price of your school glen has jumped fourteen percent over the last month at the high oil price means it's more profitable for companies to export refined products such as petrol and jet fuel has been subject to lower taxes and crude. now the price is too precious metals are on the rise as investors opt for them over stocks the price of silver has jumped over the psychological mark of forty two dollars per ounce which is the highest level in three decades. as if you look at the markets now in europe markets are up in afternoon trading retail stocks are among the biggest gain as u.k. electronics chain dixons rising over three percent the move comes up to the owner of the rivals but we did that because reason p.c. world chains announced plans to close thirty f

rosneft cannot sit at the moment go ahead we remember that swap part of the agreement refers to receiving five percent of b.p. and b.p. in exchange receiving nine and a half percent. and this is merely up holding an injunction that was already made earlier we saw a court say that the entire deal which also involves a tie up between b.p. and have to explore parts of the arctic shelf where there are believed to be huge reserves of oil. they've already said that that couldn't go ahead then b.p. came through and said well maybe if we can't go ahead with the exploration deal maybe we can just go ahead with the shuswap on its own and of course has today are held the injunction saying it karns be p k b p the a r consortium argues that the deal between b.p. and ross never breaks elements of their foundation agreement when they first set up seeing which saves any business any work that b.p. wanted to undertake in russia had to be agreed that b.p. had to have first refusal on that work and they say that this breaks the terms of that contracts this is probably not the end of this story b.p. is looki

and rosneft may be canceled altogether. well of course this is a rush and we know that the everything is possible here i think it's highly unlikely given the political support to the situation at the top of the russian government but. i think in the worst case you. know chances are life will be to actually complete this transaction we're all slaves then but these little russian government may be looking for another partner again what about b.p. well what's next move what they're going to be doing now. i think the next move for. b.p. to find some sort of solution which will be acceptable for. our care by the mid arsenal and gas families that are going to bank thank you so much for joining us on this rainy day thank you. how i finally quickly look at the markets oil prices have extended their rally with ongoing unrest middle eastern africa weakening dollar is also contributing to the growth of our west texas crude that new highs almost two hundred twelve dollars per barrel. france is trading at one hundred twenty four hundred

and rosneft as up held the injunction blocking the deal of the tribunals the session appears to mark another victory for our full access win over between its partners in the russian british joint venture t m k p p a r has strongly objected to be peace proposed tie up with rosneft saying it broke their shareholder agreement and that is so expecting a r to get some sort of compensation from b.p. for whatever loading that are not north capital says it will most likely be in the form of physical assets. b.p. finished the year with losses and he is not is extremely unwilling right now to pay the cash probably he would offer for b.p. to buy. gas stations or not even say that he wants to acquire the be peace gas station because i don't think it's it's adoptable it's reasonable but probably they would consider b.p. to solve them for their network of gas station at a discounted price therefore team key theoretically will be better positioned in the market of the retail gasoline. similar commodity experience for me while prices have extended their rally with ongoing unrest in the middle east a

the deputy prime minister here which means he has to step down from that position as the head of rosneft now although they have known that this was going to happen it was expected but a presidential ruling only came in around two weeks ago so it hasn't given much time to settle in for rosneft this could cause some uncertainty surrounding the sixteen billion dollars share swap deal between us next and be paid now this deal hasn't had many many snags in the past t n k p p p p's russian partners at the moment to try to oppose it at every turn and they've even suggested that. they take a billion dollar lawsuit could be filed by t n k p p against b.p. and the loss of earnings that they could make from the expiration of oil fields. the pain as russian partners were widely expected to hold an extraordinary meeting on wednesday to try to resolve their differences but thank you b.p. is now saying the meeting will not take place the dispute is causing a headache for the government that has a strong interest and exploration. but capital where an artery believes there's also a silver lining for russ

percent although they were trading positive in most of the session so you can get some of the stocks rosneft managed to decline in the end of two percent as it was actually one of the biggest gainers for out the session it's all still bucking the trend by the end of monday's session point eight percent up on higher gold prices which declined also by the way we're going to look at that in the second to burbank is down two percent. two commodities now oil prices are attributing from gains we are seeing light sweet down seventy cents at one hundred eleven and a half ago. as per barrel brant is over one hundred and twenty three dollars. gold did here a new record high of one thousand five hundred eighteen dollars although currently we are seeing much lower values of fifteen hundred and by dollars that's even a decline on the previous close of the session silver also saw highs of almost fifty dollars per ounce but right now is below forty seven. russia's top precious metals nine upholders gold is expected to report a seventy five percent increase in profits for the second half of last year a surv

six point eight percent stake in look at some of the movers on the my sex energy majors are down rosneft down one point three percent lower crude prices to blame rossi have russia's largest oil producers and losing one point three percent as i mentioned despite reporting a sixty percent increase in net profit for the first major positive financial results fail to provide gazprom shares from declining around half a percent this hour banking stocks are also down with d.t.b. shedding almost zero percent. and there's been a tough second quarter so far for the russian stock markets the strong well priced a little to encourage investors unable to post the r.t.s. a nice exacting a month lower than when they started john when's all davis from asset management explains what's putting off investors goes domestic and foreign. as long as we have a weak dollar as long as. we have persistently high quality demand which seems to be the case russia in general it's actually going to very good position from that standpoint the problem for the russia are related not to. business it's related to individuals

companies now just how this will affect the major dealy sixteen billion dollars share swap deal between rosneft and b.p. remains to be seen section was one of the key architect of that deal he'll now be replaced by thirty ish ition who's the senior vice president at v.t. bank it's now mr shushan job to try and make sure that deal goes through but this is the only news coming out of the ross left a b p saga today we've also heard the t.n. k b p b p's official partner here in russia that they are looking to sue p.p. for tale of billion dollars should this deal go ahead. and of course came from nor councils has the time log announcement could not have been more perfect. is one of the companies which were announced for their position this year old next year and the timing extremely well for us in the of before they're pretty sure there will be easing program in the states but there are a lot of cash in the market the could be more sold for four in buyers for four for me of baggage is going to be sold through therefore it has to get done very quickly and i think this is a very timely action. russia'

and rosneft appears close to hitting the rocks the russian state run oil firm has confirmed that there's days deadline for the deal has not been extended and will make an announcement concerning its spayed tomorrow b.p. has been trying to rescue the share swap and arctic exploration venture with ross net strongly opposed by its russian partners in tainted and in the wall street journal reports b.p. is now considering selling out its highly new concepts and venture. if i'd been to glock of the world's largest emerging economies is gathering this we can china a meeting of the so-called brics that is brazil russia india china and south africa is seen as an attempt to develop a unified approach to global economic challenges. i think the difference but they do have some things in common they're all growing force their will on the rule to a certain extent the institutions of economic governance but we have in the world the g. seven in particular i think what they can do is they can coordinate positions they can understand where they're coming from and they can put unified position to the g sev

companies now just how this will affect the major deal if sixteen billion dollars share swap deal between rosneft and b p remains to be seen section was one of the key architect of that deal he'll now be replaced by thirty ish ition who's the senior vice president at v.t. b. bank it's no mystery shushan job to try and make sure that deal goes through but this is the only news coming out of the ross they have to be piece saga today we've also heard the t.n. k b p. p p's official partner here in russia that they are looking to sue b.p. for ten of billion dollars should this deal go ahead. peter all of the reporting that and just to remind you on monday the financial times said b.p.'s preparing to buy out its russian partners in ten k. people as it's trying to save its deal with a russian or major loss net to explore the arctic shelf however christine to scurry from standard and poor's makes more sense for people to sell out of ten instead of buying for the real. i think that probably has made it clear that he wants to try to get this deal through in a manner that's acceptable to all parties involve

for them to get out of the trouble and continue their sixteen billion dollar share swap deal with rosneft if they can come to terms with their current russian partners a are now to do that they're going to have to buy out of their current venture t.n. k p p the russian partners put the value of that company at around seventy billion dollars last twenty billion more than the current market price ok so b.p. is going to have to come up with their own thirty billion dollars in cash or an equivalent in assets or a combination of the two if they're to try and buy their way out of the trouble that they find themselves in. the vive member bloke of the world's largest emerging economies is gathering in china the meeting of the so-called breaks brazil russia india china and south africa and finesse in atlanta of the coming internal differences and develop a unified approach to global economic challenges and to discuss whether that's possible are now joined here in the studio by exam tomorrow that chinese chief economist for russian c.s. at h.s.b.c. group that is under thank you very much indeed for

hello and welcome to business l a t thanks for joining us rosneft and b.p. may extend by a month the deadline to complete the strategic according to the better mr newspaper they were majors are reported to need more time to complete talks with b.p. the russian partners and its joint venture team k d p n a russian shareholders in ten k.v. won an injunction claiming the deal between b.p. and ross never contradicts. hold agreement process and b.p. has so far failed to find a compromise on a price for a stake in t.n. k b p well he's a lawyer and that reports now from. initially the progress this was good there's a compromise could be found but as the deadline looms closer optimism has faded among industry participants there's been much speculation in the press about how to resolve the standoff between b.p. and its russian partners in t.n. k.b. but so far no clue from either side confirming the dream is one possibility is that b.p. might buy out our praxis remember the russian consortium of shareholders that b.p. doesn't have spare cash floating around following

and rosneft has up held the injunction blocking the deal but the british oil major knows that this is not the final verdict although b.p. says it will now look at ways it could extend the april fourteenth deadline under which the shares swap agreement will terminate now the tribunal's decision appears to mark another victory for access where nobody is partners and russia all from tain k v p a r has strongly objected to be peace proposed tie up with ross they have saying it broke their shareholder agreement it will snap announced the asset swap optic exploration deal back in january after the stories the ruble has made steady gains against the dollar and the euro since the beginning of the year stronger oil price has added further impetus to this rise but i think sandra if you go from the capital believes the russian currency may be close to its peak. appreciation is probably close to running its course because first you have to sign a strong current account in the first quarter and then resume for growth this factor influencing the real goal will diminish and second we still have kept

and rising oil prices if you look at some of the shares energy majors are among the main game is rosneft up one point seven percent gazprom two percent precious metals producers were also on the rise on that gold rush dollars gold was gaining four point three percent at the close as it reported output and revenue up sixty percent in the first quarter. these moves was with their rebound from a sharp so long for off the because i would look don't agree to all of the us that for some. and actually can be. seen to continue the continuation of the mostly on the brink of good results so for us the company is slated to be. in call for the full support. for what we in the future of the price of the oil and there should be some short covering the in the russian market was taking place to be the major winos will the world com produce one across there we sure was supported by the french and the management will be doing the share buyback it wasn't like the reason but it was a cause for our performance business out see we'll be back next hour with kevin's next with headlines. the. wealthy british sty

and rosneft appears close to hitting the rocks the russian state run oil has confirmed that thursday's deadline for the deal has not been extended but it will make an announcement concerning its fate to morrow he has been trying to rescue the sword and also explore ration venture with ross left which has been strongly opposed by its russian partners and jan k.b. the wall street journal reports b.p. is now considering pulling out of its highly lucrative ten k. venture the main commodity prices have done much to support russia's markets in the first quarter of all battles and sort of come up to it such as sugar have all been setting records that's been speculation the rally will continue and result in a commodity at super spike although its last concert from saxo bank explains what. on the energy sector we actually have the rising that are the year the rise in prices over the last few months if you two are synchronized growth but also more importantly we've got the rest of the middle east and north africa the markets kind of driven on by fear right now i feel for conservative but it can

declines in new york trading and this is putting pressure on energy stocks in the second week of those rosneft here's the down zero point four percent now used to be down as much as one a half percent look or also negative metal stocks are stronger lifted by of global prices for precious metals like gold silver nickel is up one point zero eight point one percent whereas polish gold is up one point six percent. russia's top telecoms group prosthetic arm and spine lies the process of taking over eight regional companies under its brands now the company weapon estimated sixteen billion dollars is aiming to list on the london stock exchange the president of russia telecom i sound a bit of a thought of explains the reasons for the i.p.o. . say least of that the main goal of the flute station is to improve the liquidity around shares we hope to complete a listing by the end of this year it has a significant role for the company's image i mean expect the new year track to investors in southwestern funds will also improve the company's capitalization and maximum volume of the listed shares maybe up to

and potentially rosneft as partners could be preparing to buy out the russian shareholders stake in t.n. k b p now they may be going in and doing that together and it's the stake which could be worth up to thirty billion dollars now the various parties are desperate to have this situation resolved and in fact it's likely that we'll see more state intervention come during this week more pressure from the state which has been conspicuously absent in the days leading up to this wants to remain the world's biggest energy producer and to do that it needs to open up new exploration in territory like the arctic it also wants to be at the forefront of arctic exploration because it sees the territory very much in its own backyard but it doesn't have the expertise or the technology to make that happen on its own so it needs international partners also b.p. wants this because russia is one of the very few places that it can now go for new production growth its reputation is increasingly in the u.s. and it's not at risk having it downgraded and threats of a new takeover so there's a lot to lose for

russia's two largest oil companies states owed rosneft an independent lukoil have signed a deal over offshore exploration this marks the corals first offshore deal well has initiated the host of such partnerships with ford majors like he chevron and exxon but the muslim course from north capital believes the tie up with luke while was mainly due to problems with the arctic deal with. i think there is a continuation of the old saga. and there are exploration fields oil fields as we know that was not quite successful communication with the soul apparently is considering some alternative scenario including collaboration allows me with a rush hour coverage of rush. just lukoil lukoil obviously has some certain experience in developing fields because it's known by its quite successful deals only cost b. and c. and obviously we cannot compare our environment with the cost be an environment obviously of the success working from the scratch well such a complex projects obviously give certain advantage to. less compared to any other company which my come across they're all sniffed at the card

percent the bisects two point nine percent second look at some of the movers in friday's session rosneft down one hundred percent despite high oil prices also last despite reporting a sixty percent increase in net profit for the first quarter and positive points all results failed to prevent us from shares from declining more and that it later i'm banking source but also down because even in point nine percent of. all russian markets have been vulnerable to profit taking in lower trade levels over the past week again which alpha capital believes however this is simply jew so there are performing other markets reza clipboard was soon no rush was late getting its leg however the proof couple of hours it was are performing all. other developed markets so i believe that it's from l.a. consolidation of course produces some profit taking some segments where it would be stronger than the rest of the market for a person still sector with. russia still majors being significantly lower this week however we still see the top players and top blue chips like ruth nicole gas problems para bank. some o

s proposed sixteen billion dollars share swap deal with russian state owned rosneft it claims the deal breaches a shareholder agreement with b.p. which says ten k.v. could be its primary vehicle for all exploration in russia and ukraine last month they are succeeded in getting this stock on the arbitration for good all to rule against the exploration deal with what's there. if you prime minister it is certain one of the principal architects of that b.p. deal could soon be forced out of his position as chairman of the rosner board and started me permitted it signed a new order prohibiting ministers and other senior officials from being on the board of major state owned corporations in total seventeen russian companies are on the restricted list and will have to remove top state officials by the first of july finance ministry c couldn't will have to leave the country's second largest lender of d.t.b. and duncan producer of roster the move is seen as part of the president's bid to improve corporate governance and the foreign investor. and some of the stories japan's national and u.k. disa

two point nine percent of the my six that's despite high oil prices rosneft russia's largest oil producer lost one and a half percent on friday despite reporting a sixty percent increase in net profit for the first quarter positive financial results also failed to prevent gazprom shares from the climbing or and that was the second banking stocks were also down with b.c.b. shedding almost two percent the russian markets have been vulnerable to profit taking on lower trade levels over the past week you're going to get your models of capital believe soever that this is simply due to them outperforming other markets in the previous months. recipe what we're seeing now russia is lagging and slagging however in the previous couple of mars it was our performance other developed markets so i believe that it's well a consolidation of course produces some profit taking some segments where. it's stronger than the rest of the market for a person still sector with. russia still major us being significantly lower this week however we still see the. blue chips like nickel gas problems para bank. some ot

welcome to business and say thanks for joining us the people of both dudley's to meet the head of rosneft in moscow in a bid to personate salvage the shortfall deal between the two companies so far both claim they've broken off talks with b.p.'s russian partners interior and k b p earlier look at the deal and quit exchanged between the energy giants meanwhile the russian shareholders of ten k d p had proposed that b.p. is pending all to exploration deal with last names they conducted via the russian british joint venture earlier this week b.p. concerned it's offered ten k. b.p. cash international benchers and probably out of their russian partners stake the proposal has been rejected and k.p. says it's now worth eighty billion dollars trying to build a look at the start of the. expo times an oil products may have to rise in russia global crude prices continue to spike and the jamila sergei shm of course as high tariffs may be needed to avoid fuel deficit at home the points for your all screwed blend has jumped fourteen percent over the last month but the high oil price means that small pr

companies now just how this will affect the major dealy sixteen billion dollars share swap deal between rosneftand b.p. remains to be seen section was one of the key architects of that deal he'll now be replaced by thirty ish ition who's the senior vice president at v.t. b. bank it's no mystery shushan job to try and make sure that deal goes through. and kosky from north council says the timing of such an announcement could who have been more passive proscenium is one of the companies which were announced for their privatisation this year or probably the next year the timing extremely well for us near before their finish of their call the easing program in the states but there are a lot of cash in the market the could be a simple and more so for for in buyers for four for those who are back which is going to be sold to therefore it has to be done very quickly and i think this is a very timely action. and more top officials are removing themselves from the boards of big space companies russia's economic development minister and director of the winner and presidential and according to our coverag

substantial revenue stream so it is a saying that gold doesn't he knew all along about a deal with rosneft would lead to confrontation with the neighbor the russian can still see mr holder. fish to holders will presumably be hoping that he's got some kind of solution up his sleeve that he has known about all along essentially you know look at how the markets are performing his our european stocks are lowered by the banking sector that's not the spanish land the banking tariff order the twenty six percent decline in net profits in the first quarter among other more. it concerns j.p. morgan's growth quarter results which were not as positive as first thoughts here in moscow the stocks edge lower echoing negative sentiment across global exchanges the r.t.s. and m isaacson both losing over two percent this hour and here are some of the market moves on them isaac's energy majors are among the main losers here with gazprom and roll snapshotting over three percent of new coral is two percent everette. inflation and russell rose point one percent from the fifth to the eleventh of april and now sta

and exxon letters and cards from north capitol believes the tie up with luke oil was mainly due to rosneft problems with the arctic deal with b.p. . i think there is a continuation of the old saga. and there are exploration fields oil fields as we know that was not quite successful communication with the so apparently is considering some alternative scenario including collaboration. with the russian. of russian partner i just knew quarrel look or oil obviously has some certainly experience in developing fields because it's known by its quite successful deals on the cost of the scene and obviously we cannot compare our environment with the caspian environment obviously of the success working from the scratch also i should complex projects obviously give certain advantage to lukoil as compared to any other company which my come across they're all sniffed at the core of the point. to stop markets now in his russian's friday closing picture and my thanks moderate growth from low volumes as european and u.s. markets were closed for the start on days shares her bank was the biggest gainer most e

is down point nine percent my six point one three percent second look at some of the stocks rosneft was one of the biggest gave us throughout the session lose two percent of the. polymath so it was bucking the trend it was up point eight percent of the wraps up today's trading. russia continues to be driven by external factors as usual the start of the week this unsurprisingly quiet as the european exchanges most of them remain closed for the easter holiday weekend through the russian market looks into the room which was circulated in the media regarding a potential increase in mineral extraction tax in russia independent producers producing the so-called guess would be receiving text breaks and. facing the extraction tax and growth in line with inflation whereby. gazprom of this world producing dry so-called dry gas could see a doubling of. oil prices are retreating from early again despite fears that tensions in syria and yemen which escalated over the weekend may disrupt supplies light sweet is currently below one hundred twelve dollars brant is up over one hundred twenty three dolla

and rosneft may be done gold a golden carrot in front of the shasta objectors ten k. b.p. but it seems the company wants an entire bunch overnight hiking its not a billion dollar buyout prize minute that b.p. offered k.b. big cash international ventures and a buyout of their russian partners stake in t.n. k p p the average after all offers and now value in k b p at eighty billion dollars twenty billion more than by the start of the week it was asians seem to be a deadlock both b.p. and ross yet say talks with b.p.'s russian partners have broken off. export oil products and they have to rise in russia global crude prices continue to spike energy minutes of course is high and tyrants may be needed to avoid a huge deficit at home the price for your all screwed blunt has drunk fourteen percent over the last months but the high oil price means it's more profitable for companies to export refined products such as petrol and jet fuel. to tighter than create. the ruble has been extending its losses to the dollar with all price weighing on the currency however the genuine sentiment

s proposed tie up with rosneft saying it broke their shareholder agreement our london correspondent laura abbott has more. well this is as you say essentially a yes or no the victory for. the consortium of russian shareholders in b.p. it means that b.p. doesn't get what it wants that b.p. ross may have tied up cannot at the moment go ahead we remember. what part of the agreement refers to us now after receiving five percent of b.p.'s says and b.p. in exchange receiving nine in the halls. and this is merely out holding an injunction that was already made earlier we saw a court say that the entire deal which also involves a tie up between b.p. and russ have to explore parts of the arctic shelf where there are believed to be huge reserves of oil and gas what they had already said back couldn't go ahead then b.p. came through and said well maybe if we can't go ahead with the exploration deal maybe we can just go ahead with this on its own and the court has today are held injunction saying it karns b p. b p b a our consulting or the deal between b.p. and russia never breaks the elements of the

pushed with questions certainly expected to be fielded over the sure sweet deal of the deal with rosneft to be hard pushed to find anybody in the business world who want to switch places with the heads of b.b.c. day. peter all of the reporting there live from the ross net headquarters he said many thanks indeed. the five member bloc of the world's largest emerging economies is gathering in china the meeting of the so-called brics brazil russia india china and south africa is seen as an attempt to develop a unified approach to global economic challenges and there have been some doubts whether russia should be in the club even if it's a different level of development but jacob note from morgan stanley believes russia is a good fit. russia urban or eastern industrial or is a couple of generations ago and that sets it apart from the other brits who tend to have a young population growing population and much lower incomes because after book russia is big and it's got huge resources and it's got great potential so in the sense of being an economy that could grow faster has great potential to p

look at some of the main stocks gazprom one of the biggest losers this out down almost two percent rosneft also a percent down burbank one point one percent lower. the russian government seems to be having doubts over its decision to raise the tax burden on businesses prime minister vladimir putin admits the new rules which came into effect in january but they could deprive companies of incentives to invest and it's a criticism that's being echoed by business leaders such as the vice president of mobile phone giant nokia it's very important for us that consumers have access to. good bye cs and mobile services with the lowest possible price because that is good for the corner there's a whole it's good for consumers and it's good for economic growth in russia and that's why all the extra virgin which is going to be set for mobile technology says he's a negative for the for profit we are a substantial tax payer impression. i think that on the monthly basis we are contributing to the russian government a budget by one billion brothers so it's very substantial support coming from the this busin