Russia restricts natural resources from foreign companies

Russia has this year declared its intention to exclude foreign companies from bidding on exploitation of Russian natural resources.

The news will especially affecting the exploitation of oil prospecting and metal ore mining by Western companies, such as Exxon, Shell, and Fleming Family and Partners, as only those companies with at least 51% ownership by the Russian state are eligable to take part in tenders.

It marks the acceleration of an aggressive campaign under President Putin’s leadership, which has sought to bring Russian natural resources very much under state-control.

This means that Russia could join the ranks of Mexico, Saudi Arabia, and Kuwait, who all disallow foreign companies from developing their reserves.

The move could be especially costly to BP, which paid 7.5bn (£5.25bn) for a 50% stake of TNK-BP.

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