Russia-based Rosneft has agreed with BP to dissolve its refining joint venture in Germany, Ruhr Oel, according to a report from news agency Reuters.

The decision was approved by Rosneft's board in December, while BP's board approved the move last Thursday.

After restructuring later this year, Rosneft will become a direct shareholder in the Bayernoil refinery and raise its stake in it to 25% from 12.5%, according to the report. Rosneft also plans to increase its stake in the MiROrefinery to 24% from 12%, and in the PCK refinery to 54.17% from 35.42%, Reuters reported.

"The restructuring of Ruhr Oel GmbH will enable Rosneft and BP to re-focus their refining andpetrochemicals strategies in Germany," Rosneft said in a statement.

Approval of the deal from the European Commission is expected in the first quarter of this year.

BP, which owns a 19.75% stake in Rosneft, will consolidate 100% of the equity of the Gelsenkirchen refineryand DHC Solvent Chemie, a solvent plant, according to the Reuters report.