BP has signed a deal with Rosneft to bring a new stream of Russian gas to European energy companies by the end of the decade.

Executives from BP and the Russia oil giant met in St Petersburg on Friday to sign a memorandum of understanding that could pave the way for new gas exploration and production projects in Russia.

Under the terms of the deal BP’s gas trading business will also enter into a long-term supply agreement with Rosneft to bring more Russian gas to the European market from 2019.

Earlier this year BP, which owns almost a fifth of Rosneft, said it could receive supplies of between 7 billion and 20 billion cubic metres of gas a year from Rosneft, but only if Russian President Vladimir Putin agrees to break the monopoly hold of state-backed gas giant Gazprom.

Currently Gazprom holds exclusive rights for pipeline gas exports for Russia.

Rosneft chief executive Igor Sechin has reportedly asked Mr Putin to allow his company to export gas too. Rosneft is 50pc owned by the Russian government.