September 2012 TNK-BP Announces Important Step to Enforce Compliance

on 19 September 2012. Posted in Russian Energy Compliance Alliance

On September 15, 2012, the oil and gas company TNK-BP publicly announced that it was ending a contract with a long-standing supplier of services. According to the announcement, TNK-BP decided to end the contract based on concerns that the supplier was not complying with TNK-BP anti-corruption policies, standards and procedures. At a Moscow forum hosted by TNK-BP for suppliers on September 15, the company’s Executive Director German Khan stated: “We’re building robust long-term relationships with our contractors on the basis of best international practice and strongly recommend that our partners comply unconditionally with TNK-BP’s business ethics standards. This is a vital requirement for the development of our mutually beneficial collaboration, and for the companies themselves it’s a guarantee of the sustained growth and prosperity of their business.”

This step by TNK-BP sets an important precedent in improving compliance in the Russian oil and gas industry for other companies to follow.

For further reference, please see TNK-BP’s press release on its "Supplier and Contractor Forum". For press coverage of TNK-BP’s announcement, please see the following article in Vedomosti.