BP’s principled stand to walk away from its investment in Russian state-owned oil firm Rosneft had limited impact on its share price today.
The UK energy giant’s stock was down less than 4%, at 363.55p, as markets closed.
But the shares are still worth more than they were at the start of 2022.
BP’s response to the Ukraine crisis is a major shift for the biggest foreign investor in Russia since 2013.
Although it will immediately benefit from higher oil prices, BP estimates dropping ties with Russia could cost it up to £18.7 billion.
Rosneft accounts for around half of BP’s oil and gas reserves and one-third of its production.
Meanwhile, the price of a barrel of Brent crude oil touched a high of $105.07 after Western allies imposed more sanctions on Russia and blocked some Russian banks from a global payments system, which could cause severe disruption to its oil exports.
As of 7.30pm, a barrel of Brent was worth $98.43.
Even Russian threats of escalation do not, as yet, appear to be having much of an impact.”
Chris Beauchamp, chief market analyst at online trading platform IG.
The FTSE 100 leading share index closed the day down 31.21 points, or 0.42%, at 7458.25 as traders contended with the wide-ranging impact economic sanctions could have on the global economy.
In France and Germany, stock markets had similar falls to London, with the former down 1.39% and the latter closing down 0.73%.
A pound was worth 1.342 US dollars and 1.196 euros – flat on the day against both currencies as governments in the US, EU and UK tried to move in unison with sanctions.
Chris Beauchamp, chief market analyst at online trading platform IG, said: “Markets have shrugged off some of the events of the weekend, holding up better than many had feared given the ongoing conflict in Ukraine.
“The lack of any obvious progress in the Russia-Ukraine ceasefire talks has not provoked any further selling, and for now the lows of the day are intact.
“Even Russian threats of escalation do not, as yet, appear to be having much of an impact.
“Overall, the initial shock of conflict has worn off, and aside from the huge impact on Russian stocks and the rouble the atmosphere is far less febrile than it was last week.”
Russian-facing shares on the top index fared the worst, with Evraz closing down 29% and Polymetal losing 56%.
Elsewhere, miner Ferrexpo, which operates in Ukraine, said it woul delay publication of its annual results due to the invasion, as it assesses the impact of the conflict on the business. Shares closed up 16p, or 10%, at £1.69.
Exhibitions giant Hyve Group said it had postponed events in Ukraine and expects disruption for those expected to be held in Russia. Shares dropped 20.7p, or 23%, to 68p.