The State as a Contracting Party: the Delimitation of Regulatory Authority in Licensing and Product Sharing Agreements
Article from: OGEL 1 (2005), in Production Sharing Contracts
Introduction
The year 2003 began with the news of the largest equity investment made by a foreign company in Russia. In June 2003 BP announced the completion of a deal where it invested 6.75 billion USD to purchase a 50% share of TNK, to create an oil producer valued at 18.1 billion USD. The actual structure of this deal seemed to illustrate the pace of change in Russia: a board structure has been established that gives both sides an equal number of seats and a veto power over major decisions. The deal embodied an undisputable declaration of confidence in both the domestic economy and legal framework. ...