Due to the sanctions imposed after Russia’s invasion of Ukraine, dividend income of about Rs 2,500 crore of Indian petroleum companies is stuck in Russia. A senior official gave this information on Thursday.
Public sector petroleum companies have invested $5.46 billion to buy stakes in four different assets in Russia. Indian companies get dividends on the profit from the operation of these oil and gas fields. But due to the economic sanctions imposed after Russia’s attack on Ukraine last year, Indian petroleum companies have not been able to get this dividend till now.
“We used to regularly get dividend income from these projects but this time it is lying in bank accounts in Russia,” Oil India Ltd’s chairman and managing director Ranjit Rath told reporters here. This is because Russian banks are banned from SWIFT, the global system for financial transfers. Apart from this, the Russian government has also imposed restrictions on payment in dollars.
Dividend income of Indian petroleum companies worth $300 million, or about Rs 2,500 crore, is stuck in Russia. The alliance includes Oil India, Indian Oil and Bharat Petroresources Limited. Bharat Petroresources Limited, Bharat Petroleum Corporation Ltd. is the unit of ONGC Videsh Limited is also expected to get almost the same dividend. Rath said that options are being looked into to bring this dividend income from Russia.