Russia's Putin hails Rosneft-BP tie-up as beneficial for economy

MOSCOW (AFP) - Russian President Vladimir Putin on Monday hailed state oil company Rosneft's new tie-up with Britain's energy group BP as beneficial for the economy and a "very good" signal to the markets.

"This is a good, large deal that is necessary not only for the Russian energy sector but also the entire economy," news agencies quoted Mr Putin as saying during a meeting with Rosneft chief executive Igor Sechin.

"This is a very good signal to the Russian and international energy markets," said Putin. "I am certain that it will be beneficial." Mr Putin's comments strongly signal the Russian government's intention to approve the state company's acquisition of the two 50 per cent stakes held in the Anglo-Russian TNK-BP joint venture by BP and four Soviet-born oligarchs.

The deal - both parts of the buyout estimated to be worth S$74.5 billion by Sechin on Monday - has to be approved by the Cabinet because the government still owns a majority Rosneft stake.