MOSCOW, August 4, 2008 (AFP) - The chief financial officer of British-Russian oil company TNK-BP resigned on Monday, saying he could no longer carry out his duties because of a row between BP and its Russian partners, the company said.

James Owen's resignation letter 'states that as the current shareholder issues remain unresolved he feels it is difficult for him to continue working independently, as his role demands,' TNK-BP said in a statement.

TNK-BP is Russia's third largest oil company and accounts for around a quarter of BP's worldwide output. The firm has been riven for months by a dispute between shareholders for control and mounting legal troubles.

The battle for control of TNK-BP is being seen by foreign companies and governments as a test of the investment climate in Russia's lucrative energy industry under President Dmitry Medvedev.

TNK-BP's chief executive Robert Dudley, whom the Russian shareholders want sacked, has said the dispute is tearing the company apart. The British government has warned it is harming Russia's image.