17 May 2012 08:04 [Source: ICIS news]
KUALA LUMPUR (ICIS)--Participation by foreign companies in the Russian petrochemical sector is being held back by the difficulties involved in dealing with the local legal system, a consultant said on Thursday.
"The dependence on Russian law is proving to be rather distasteful" to outside firms, IHS senior director John Bonarius told the annual Asia Petrochemical Industry Conference (APIC).
The country needs to find a better legal environment to attract foreign investment partners, he said.
Noting the general challenges associated with doing business in Russia, Bonarius said he is full of admiration for his former colleagues at UK oil major BP for persevering with the company's foray into the country.
The UK firm's joint venture called BP-TNK has had problems for years.
A dispute with Russian minority shareholders over a failed Arctic exploration bid that BP had separately planned with Russian company Rosneft culminated in a police raid on BP's Moscow office in August 2011.
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