Sept. 5 (Bloomberg) -- BP Plc's agreement with Russian partners to end a clash over a joint venture there will give potential investors more confidence in the world's second- largest oil exporter, European Union Energy Commissioner Andris Piebalgs said.

``It was great news,'' he said today in an interview with Bloomberg Television at a conference in Cernobbio, Italy. ``It gives confidence for the companies that are investing billions in Russia and will continue to invest billions.''

BP yesterday agreed to remove the chief executive officer of TNK-BP to end an eight--month battle with billionaire investors in the Russian joint venture that threatened the British oil company's future in the country. The shareholders also will examine selling stock in a unit of TNK-BP, Russia's third-largest oil company, to boost the company's market value, and will bring three independent directors onto the board.

``It's good news for BP, but also goods news for the Russian partners because they got, well, more possibility to influence the company's strategy,'' Piebalgs said.

He also said Russia's invasion of neighboring Georgia is a wakeup call for Europe to diversify energy sources.

``This was a reminder'' that Europe must increase its suppliers, he said. There were no fundamental changes in Europe's relationship with Russia but the incident ``changed our perception'' of energy security.

He also said it would be ``counterproductive'' for OPEC nations to cut production.

To contact the reporters on this story: Adam L. Freeman in Rome at afreeman5@bloomberg.net

Last Updated: September 5, 2008 04:50 EDT