Reuters reported that a top Russian government official opposes the possible purchase by state oil major Rosneft of BP one half stakes in Anglo-Russian oil company TNK-BP.

Mr Arkady Dvorkovich Deputy Prime Minister who coordinates energy policy in the world's largest oil producing nation said the government had not yet discussed the details of a possible deal with Rosneft CEO Mr Igor Sechin.

He said that "Overall, it serves no useful purpose for any state company to expand its role in the economy."

Mr Dvorkovich previously the top economic official in the Kremlin took over the role of deputy prime minister responsible for energy from Mr Sechin after Mr Vladimir Putin returned to the presidency in May.

Mr Dvorkovich and Mr Sechin have publicly clashed over numerous issues including privatisation where Mr Sechin has been seeking to consolidate energy assets under state control.

The deputy premier said Rosneft would not be able to buy a stake in TNK-BP, Russia third largest oil firm without government permission. He also questioned how Rosneft might be able to raise the estimated USD 30 billion that could be required to complete a transaction.

Mr Dvorkovich said "This purchase won't happen without the government approval anyway. You don't find USD 30 billion lying around on the street. He said that "This means we have to see how the money would be raised, how quickly it is returned in the form of TNK-BP dividends, how it would affect Rosneft financial situation and whether it would bring other projects to a halt."

BP announced in June that it would start the process of selling its 50% stake in Russia third largest crude producer TNK-BP after years of squabbling with the AAR consortium of Soviet-born billionaires which owns the other half of the company.

Source - Reuters

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