The Russian billionaires engaged in a bitter battle over their joint venture with BP will put fresh pressure on the UK oil giant this week after a “disappointing” board meeting last week failed to break an impasse over strategy and control of the company.

Stan Polovets, the chief executive of AAR, the holding company of the four Russian billionaires that holds a 50 per cent stake in TNK-BP, said that the group has hired seven law firms, led by City firm Lovells, and that it is examining “different legal actions in different jurisdictions” to push its case.

The meeting last week in Cyprus was the first time TNK-BP’s board had met since November. AAR tabled several proposals, including the firing of Robert Dudley, the BP-appointed chief executive, greater representation for AAR officials in TNK-BP subsidiary companies, and fewer BP secondees employed at the company.

The board rejected the proposals, and BP continues to stand steadfastly behind Dudley, who AAR accuse of managing TNK-BP in the interest of BP, to their detriment. AAR will publish a statement tomorrow in which Mikhail Fridman, one of the AAR principles, is expected to express his frustration with BP’s unwillingness to accede to its demands. He will say: “We are disappointed that BP again rejected our proposals aimed at enhancing the performance and governance of TNK-BP. The resolutions were fair and reasonable and would benefit the company and all its shareholders.”

At the meeting, Polovets was elected to the 10-member board to replace Jean-Luc Vermeulen, who resigned in May after the Russians boycotted a previous board meeting. The conflict between BP and AAR began last year as a disagreement over strategy and dividend policy. It has since descended in to an acrimonious battle for control that has led to lawsuits and personal attacks from both sides.

Among the actions AAR is considering is suing the BP-nominated directors on the TNK-BP board for breach of their fiduciary duty after refusing AAR’s demand that Dudley be fired.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive