The deal would see Rosneft acquire half of TNK-BP from BP, in turn BP would receive up to $14 billion in cash and a 15 to 20 percent stake of the Russian oil group. The deal is also expected to see a cross exchange of board seats between the two energy giants.

The move would allow BP to gain access to large oil fields in the Russian Artic, providing reserves for many years to come and creating strong investor return for the company.

In return Rosneft will expand into a position of dominance within the Russian oil industry as the state moves to reacquire privatised industries.