Russia's Rosneft disappoints with fourth quarter profits of £1.2bn "The miss was mostly due to higher costs including operating expenses," Ildar Davletshin, an analyst at Renaissance Capital, told the news agency. Last year BP agreed to buy a near-20pc stake in the venture, as part of a $27bn stock-and-shares deal to sell its half of Russian joint venture TNK-BP. BP will be able to book Rosneft earnings in proportion to its holding in the company after the deal completes, expected later this year. The British company has said it believes it can help drive improvements in Rosneft's performance, but BP shareholders have been sceptical about what power it will be able to exert. Rosneft President Igor Sechin said: "Over the last year Rosneft has achieved significant strategic successes while also boosting operational efficiency. The acquisition of TNK-BP makes Rosneft the undisputed global oil production leader. In 2012 the company became a leading player on the gas market by setting up a joint venture with Itera and through long-term supply contracts. We also pushed ahead with our strategy of securing long-term contracts with oil off-takers.