Deals signed yesterday and today by Shell and BP will make Britain the second largest foreign investor in Russia. Moreover, the massive BP move to exploit a Siberian gasfield could in time see Britain outstrip even the US in investment.
Shell's is investing almost £600 million sterling in a joint venture with Gazprom, the world's largest gas production company, the Anglo-Dutch giant announced yesterday.
Today BP will sign a deal with the Russian Energy Minister Mr Sergei Kirenko in No 10 Downing Street worth an initial $2 billion (£1.2 billion) - a deal which could grow to $3billion (£1.8 billion).
The Shell deal and the first tranche of the BP deal will mean total investment in Russia will stand at $4.9 billion, taking Britain above Holland and Switzerland.
If the extra $1 billion investment goes ahead, Britain would then outstrip the US which has invested $5.6 billion. The British Prime Minister, Mr Blair, yesterday wrote to the British ambassador in Moscow, Sir Andrew Wood, welcoming the Shell deal and describing it as a "significant agreement" and "a major step forward in British and Russian links".
