Rosneft, country’s largest oil company had a deal with BP which has been blocked now by an arbitration panel. The blockage of the wound disables the companies from jointly exploring for oil in Russia's Arctic. The Arctic exploration agreement was announced by the Russian government in January.

The block of the deal was demanded by Alfa-Access-Renova (AAR), which represents the business person who owns half of TNK-BP. The AAR said that the decision of blockage would forbid BP from entering into any future deals with Rosneft.

The Chief Executive of BP, Bob Dudley has come into the limelight with the blockage of deal because of his past relationship with Russia. Dudley was the in-charge of TNK-BP before he was forced to leave Russia in 2008. Dudley took over as the CEO of BP last year following the BP's Gulf of Mexico oil spill.

The decision of arbitration panel has been declared as a major victory to BP's billionaire partners in TNK-BP. The panel has claimed that the deal between BP and Rosneft has violated their rights of refusal on deals in Russia which were mentioned in the shareholder agreement.