June 18, 2010 6:35 PM

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BP may face annihilation: Medvedev

Russian President Dmitry Medvedev has questioned the future of the British oil company BP saying the oil giant may face annihilation after the Gulf of Mexico oil spill. In an interview with the Wall Street Journal, he described the spill as a wake-up call and said that BP can hopefully afford the losses. He said whether the company can digest those expenditures, whether they will lead to the annihilation of the company or its break up is a matter of expediency. However, BP says its finances are sound and it has agreed to put aside 20 billion dollars to compensate victims of the oil spill. It has agreed to pay 5 billion dollars into the compensation fund this year, followed by quarterly payments of 1.25 billion until the total 20 billion is paid.

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