Skadden Arps Slate Meagher & Flom has won an arbitration victory for the Alfa-Access-Renova (AAR) group in its dispute with BP over its proposed $16bn (£10bn) strategic alliance with Russia's Rosneft.

The arbitration tribunal ruled last week (24 March) that BP will not be allowed to enter into an alliance with Russian state-owned oil company Rosneft, which would have involved an equity-linked partnership to pursue joint projects in the Russian Arctic shelf.

AAR, which represents the Russian shareholders of TNK-BP, BP's primary business vehicle in Russia – is being represented by Skadden London litigation partner David Kavanagh and co-head of global transactions Scott Simpson. AAR argued that the TNK-BP shareholders' agreement prohibited BP from entering into the arrangement with Rosneft.

The tribunal has been asked by BP to vary the injunction to allow a standalone share swap. AAR argues that any share swap should be seen as a "strategic investment", and should therefore remain blocked.

Macfarlanes is advising the independent directors of TNK-BP – which include former German chancellor Gerhard Schroeder. The firm is fielding a team led by corporate partner Charles Martin.

Kavanagh stated: "This is an extremely interesting case, and demonstrates Skadden's ability to combine its litigation and M&A teams across its different offices."

Linklaters is advising BP on the dispute with litigation head Michael Bennett leading the team. The magic circle firm is also advising the UK oil giant on the transactional side of the deal.