Putin says warned BP about Russian risks

By Gleb Bryanski

PARIS (Reuters) - Russia's Prime Minister, Vladimir Putin, said he had warned BP (BP.L) about the risks of setting up a venture with a group of Russian billionaires when he blessed its creation as Russian president in 2003.

"They now have a problem with their Russian partners. I warned them several years ago that there will be problems," Putin said in an interview with French Le Monde daily attended by Reuters and released on Saturday.

BP and the Russian billionaires, which include Viktor Vekselberg, Mikhail Fridman, German Khan and Len Blavatnik, publicly aired differences this week over foreign expansion strategy and personnel policy at the firm.

"Several years ago they (BP) created a joint venture splitting the firm 50-50. When they did it, and I was present at the signing ceremony, I told them: "Don't do it. Agree to one of you having a controlling stake," Putin said.

Putin said the Kremlin would not object to either BP or the tycoons holding a controlling stake in the new venture.

"A whipmaster was needed there ... They (BP) told me they will manage and here is the result. They will always have frictions over who is the boss. These are commercial disputes within the company," Putin said.

The conflict escalated on Thursday when BP rejected a demand from the Russian shareholders to replace TNK-BP's long-serving chief executive Robert Dudley, whom the Russians accused of serving only the interests of BP.

Many analysts say differences emerged following months of intense Kremlin pressure on TNK-BP (TNBPI.RTS) to sell control to a Russian state-run firm, such as gas giant Gazprom (GAZP.MM).