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BP and Rosneft 2 0 1 5 . BP ( UK ) and Rosneft ( Russia ) had severed a long - term joint venture
BP and Rosneft BPUK and RosneftRussia had severed a longterm joint venture in with Rosneft buying BP out with $ billion in cash and a interestequity interest in Rosneft itself. Rosneft financed a large part of the buyout by borrowing heavily. The following year, in July BP received a dividend on its ownership interest in Rosneft of RUB billion. But Rosneft's performance had been declining, as was the Russian ruble. The winter of in Europe was a relatively mild one, and Europe's purchases of Rosneft's natural gas had fallen as had the price of natural gas. Rosneft's total sales were down, and the ruble had clearly fallen dramatically. And to add debt to injury, Rosneft was due to make a payment of USD billion in on its debt from the BP buyout.
a Assuming a spot rate of RUB equals USD in July how much was the dividend paid to BP in US dollars?
b If Rosneft were to pay the same dividend to BP in July and the spot rate at that time was RUB equals USD what would BP receive in US dollars?
c If the combination of Western sanctions against Russia and lower global oil prices truly sent the Russian economy into recession, and the spot rate was RUB equals USD in July what might BPs dividend be in July Please answer all parts
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