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...heart. But think back, if you will, some five years to a time when the industry was nothing like it is today. In mid-2003, when a barrel of oil fetched about $30, BP made what was then the largest ever foreign investment in a Russian firm. The British company paid more than $6 billion for a 50% stake in TNK-BP, an oil outfit it set up with a consortium of four Russian billionaires. Vladimir Putin, Russia's President at the time, joined Tony Blair, then Britain's Prime Minister, in cheering the joint venture...

Author: /time Magazine | Title: Another Fine Mess in the Oil Business | 7/9/2008 | See Source »

...leaders of both countries talking. But their tone has changed. When current U.K. Prime Minister Gordon Brown brought up TNK-BP with Dmitri Medvedev, Putin's successor, on the sidelines of the G-8 summit on July 7, the uneasy discussion was of a breakdown in relations between the British and Russian partners. Meanwhile, Dudley, the company's BP-appointed boss, is battling to keep his job. In Moscow that same day, AAR, the Russian consortium that controls 50% of TNK-BP, called for his dismissal, claiming that the business was floundering...

Author: /time Magazine | Title: Another Fine Mess in the Oil Business | 7/9/2008 | See Source »

Publicly, AAR's list of grievances is long. It claims, among other things, that TNK-BP operates too much like a BP subsidiary, resisting expansion beyond Russia to avoid stepping on the British firm's toes. Instead, the Russians want an independent CEO, and a culling of BP staff seconded to the Russian venture. AAR, led by Mikhail Fridman, TNK-BP's chairman, has even threatened legal action after its calls for more influence came to nothing...

Author: /time Magazine | Title: Another Fine Mess in the Oil Business | 7/9/2008 | See Source »

...their part, TNK-BP's British executives defend the company's performance and mutter darkly that their Russian partners are maneuvering to take control of the venture. This dispute isn't TNK-BP's only headache, either. In recent months, Russian security services have raided the firm's premises as part of an industrial espionage probe, detaining a low-level employee (though TNK-BP itself was not involved in the investigation); officers at Russia's Interior Ministry have questioned Dudley as a witness in connection with another probe into tax evasion at a firm later absorbed into...

Author: /time Magazine | Title: Another Fine Mess in the Oil Business | 7/9/2008 | See Source »

...Mandela understood that blacks and Afrikaners had something fundamental in common: Afrikaners believed themselves to be Africans as deeply as blacks did. He knew, too, that Afrikaners had been the victims of prejudice themselves: the British government and the white English settlers looked down on them. Afrikaners suffered from a cultural inferiority complex almost as much as blacks...

Author: /time Magazine | Title: Mandela: His 8 Lessons of Leadership | 7/9/2008 | See Source »

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