BP writes off $200 Million.
In February 1999, BP wrote off $200 million of its investment in Sidanco. In November 1999, Chernogorneft was sold out of bankruptcy for $176 million dollars to TNK. BP's director for external affairs in Russia commented: "The entire bankruptcy has been subject to major manipulations. We do not consider it to be valid. In many ways, this decision has damaging implications for foreign investors. BP Amoco will be very carefully reviewing its business position in Russia in the light of these events.
Simon Kukes, chairman of TNK,said that his company had upheld "international standards of corporate governance and ethical behavior and stressed that "the purchase had been made in a competitive auction" He offered BP the chance to enter a strategic alliance with him. Although TNK denied doing anything illegal, it appeared to most outside observers that the company used its political influence and the weaknesses of Russia's laws and judicial system to ensure that a succession of court cases went its way.