Analysis

British-Russian Relationship Turns Cold with Olympic Snub
The headquarters of the British-Russian oil giant TNK-BP in central Moscow. BP is looking to exit the partnership and sell its stake to one of the other Russian oil giants, but is being blocked by the Russian government. (NATALIA KOLESNIKOVA/AFP/Getty Images)
June 13, 2012
| Economics
| Europe, Russia and Central Asia
Summary
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Russia is an important market for British exporters and investors. Six hundred British companies do business in Russia, making the UK one of Russia’s largest sources of foreign investment. This relationship, however, has soured in recent months, with Russian President Vladimir Putin declining the invitation to appear at the opening ceremony of the 2012 Olympics in London next month. This snub, and ongoing disputes, could put the relationship between Russia and the UK on ice for years to come.
Britain has accused Russia of engineering assassination plots in London and has added to the Kremlin’s frustration by continuing to criticize Russia for human rights abuses at home and abroad. Then there’s the case of BP, which formed a partnership with Russian oligarchs. BP now wants to sell, and the Kremlin seems determined to stand in the way of the sale. If these tensions continue, economic accomplishments between the two countries could quickly sour, costing each country billions of dollars worth of investment potential, export gains, and job growth.
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