The routers are peering using Loopback 0s that are reachable via OSPF. The issue arises because as the BGP peering comes up the Loopback prefixes are advertised over the BGP adjacency. OSPF AD is 110 whereas the eBGP route AD is 20. Hence the Loopback routes becomes preferred over the BGP adjacency. This is a type of recursive loop and not allowed (Just as learning the destination of the tunnel over the tunnel itself). The adjacency is dropped and the whole process starts again.
I have detailed three solutions to the problem here
1) Block the Loopback prefixes from being received
On R2
ip prefix-list ric seq 5 deny 1.1.1.1/32
ip prefix-list ric seq 10 permit 0.0.0.0/0 le 32
router bgp 2
neighbor 1.1.1.1 prefix-list ric in
2) Modify the distance of OSPF to be preferred over an eBGP route
router ospf 1
distance ospf intra-area 19
3) Make use of the BGP backdoor command to raise the AD of the BGP route to 200.
router bgp 1
net 2.2.2.2 mask 255.255.255.255 backdoor
Once the command is used the route to 2.2.2.2 shows up in the BGP table as a RIB failure. Use of the show ip bgp rib command completes the verification.
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