The political risk of the Ukrainian war for the global fuel market: the case of British Petroleum in Russia

Abstract

In February 2022, Russia invaded the eastern territories of Ukraine. Three days after the invasion, pressured by public opinion and the British government, British Petroleum (BP) announced the abandonment of its almost 20% equity shareholding in Russian state-owned Rosneft at an estimated cost of USD 25 billion for the company. The case puts the reader in the position of CEO Bernard Looney to reflect on the redesign of the company’s strategy with regard to assessing the impact of political risk on its other businesses in the world. The case was designed for undergraduate and graduate students in Business Administration, International Relations, and related areas who want to address topics such as oil geopolitics, business strategy, political risk, and international business.

Keywords:
War in Ukraine; Oil and Gas; Political risk; International business