Russian Energy Minister Sergei Shmatko said Monday he doesn't expect BP PLC (BP)and OAO Rosneft (ROSN.RS) to be able to revive their landmark strategic alliance after it was blocked by BP's existing Russian partners, but he said the two energy giants are continuing discussions.

"In its current form, the deal has become a burden," Shmatko told reporters. "I don't believe there's any chance of reincarnation of the deal in its current form."

People close to BP and its existing Russian partners--a group of Soviet-born billionaires known as AAR --had expressed hope that the deal might be resurrected, but Shmatko's comments suggest the Russian government is less optimistic.

Shmatko said he hopes "BP won't be scared off" by the experience and noted that BP and Rosneft are still in discussions and might be able to reach an agreement on swapping assets "in a different time period." He also said that Rosneft would wait before offering the fields it had discussed with BP to other foreign partners, noting that it would be "indecent" to make a deal with a new partner too quickly.

BP and Rosneft announced in January plans for a $16 billion share swap and joint development of fields in the Arctic Sea off Russia . But AAR , arguing that the pact violated the terms of its agreement with BP in their TNK-BP Ltd. joint venture, went to court in the U.K. to block the deal.

After months of intense talks, discussions broke down earlier this month. The three sides were close to a deal under which BP and Rosneft would have bought out AAR 's 50% stake in TNK-BP for about $32 billion, thus opening the way for the Arctic-cooperation deal, but the sides couldn't agree on final terms.

Διαβάστε ακόμα