Due to sanctions, the dividends of Indian oil companies worth $125.5 million are stuck in Russia

Due to Western sanctions, Indian companies with investments in two Russian assets are unable to repatriate 8 billion roubles ($125.49 million) in dividends.

Due to strong western sanctions, Indian companies with shares in two Russian properties are unable to repatriate 8 billion roubles ($125.49 million) in dividends, an official at Oil India Ltd said on Friday.

Oil India, Indian Oil Corporation, and Bharat Petroleum Corporation control 23.9 percent of Russia’s Vankorneft oil project and 29.9% of the Tass-Yuryakh oilfield in east Siberia, respectively.

Tass-Yuryakh fields receive a quarterly payout, while Vankor fields receive a half-yearly dividend.

At a press conference to announce the company’s quarterly earnings, Harish Madhav, head of finance at Oil India, said, “Our dividend is lying in Russian banks and we cannot get it because of problems in swift clearance and other issues.”

Since Moscow pushed soldiers into Ukraine on February 24, European countries and the United States have slapped harsh sanctions on Russia, but India has not openly criticised the conduct.

As oil prices rose, Oil India’s net profit increased by 92.32 percent to 16.30 billion rupees ($210.20 million) in the March quarter.

The central government is “reviewing” the exit of firms from Russia, according to Oil India Chairman S C Mishra, and a consortium of Indian corporations could consider buying holdings in those assets. “So far there is no aggressive approach from us,” he added.

According to Reuters, India has asked state-run energy companies to assess the prospect of purchasing Russian oil and gas assets spurned by BP and Exxon Mobile in Russia.

According to Reuters, Shell is in talks with Indian companies to sell its part in a big liquefied natural gas plant in Russia.

GAIL India Limited, India’s largest gas transmission company, stated earlier on Friday that it is ready to buying troubled Russian oil and gas assets provided the deal makes commercial sense.

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