At least BP and Shell tried to teach Russia true capitalism

BP will offload the 20 per cent stake in Rosneft, the Kremlin-controlled energy giant, that is the residue of 25 years’ effort to teach true capitalism in Russia. Shell is ditching a deal with Gazprom, the other state oil and gas major, that includes participation in the stalled Nord Stream 2 gas pipeline to Europe and an LNG project at Sakhalin in the Russian far east. Western companies in many other sectors will abandon their footholds in Putin’s empire in the coming days. Russia’s one-generation dalliance with the western way of business – as opposed to lawless homegrown kleptocracy – is over.

But just because Rosneft pays handsome dividends, let’s not vilify BP (or Shell) for trying. Back in the Yeltsin era, the world sincerely hoped Russia was set for economic rebirth. While BP chief John Browne was negotiating a first $570 million investment in Sidanko, Russia’s fifth-ranked oil company, I was in St Petersburg interviewing British entrepreneurs doing property deals, opening hotels and building phone networks.