The decision to abandon the Rosneft ROSN.MM stake will result in charges of up to $25 billion at the end of the first quarter, BP said in a statement.
BP acquired its stake in Rosneft in 2013 as part of the $12.5 billion sale of a stake in TNK-BP.
BP BP.L Chief Executive Bernard Looney and his predecessor Bob Dudley will step down from Rosneft’s board.
“Like many, I have been deeply shocked and saddened by the situation unfolding in Ukraine and my heart goes out to all those affected. It has led us to fundamentally rethink BP’s position with Rosneft,” Looney said.