BP's chairman Albert Manifold has been removed from his position with immediate effect, following allegations of 'aggressive' behaviour towards staff. The FTSE 100-listed group made the shock announcement to the stock exchange, citing the need for a 'fresh start' in leadership.
The move comes as BP grapples with the economic impact of the Ukraine-Russia conflict, which has seen oil prices soar to over $110 per barrel. This, in turn, has put pressure on the group's profits, with analysts forecasting a significant decline in earnings for the first quarter.
BP's shares fell by 2.5% on the news, with the FTSE 100 index also experiencing a decline of 1.2% in morning trading. The group's market value has fallen by over 10% in the past month, with investors increasingly concerned about the impact of the conflict on the global economy.
The Bank of England has warned that the economic impact of the conflict could be significant, with inflation expected to rise to 5.5% by the end of the year. This could have a major impact on UK households, with the cost of living already under pressure due to rising energy prices and food inflation.
For UK savers and mortgage holders, the news is particularly concerning, with interest rates already at a 13-year high. The Bank of England has warned that further increases are possible, with the base rate now at 4.25%.
The implications of the conflict for UK businesses are also significant, with many facing increased costs and uncertainty. The government has announced a package of support for affected businesses, but the full extent of the impact remains to be seen.