New Delhi: Dividends value $300 million to $400 million accrued to Indian oil firms for his or her stakes in Russian oil property are caught as a consequence of sanctions by the US and the west after Kremlin’s invasion of Ukraine, mentioned an individual conscious of the matter.
The dividends have been pending since final 12 months. Talks are underway to resolve the problem, in response to the particular person.
As Russia is out of the SWIFT world cost system, banking channels will not be out there to disburse the dividends, the particular person mentioned.
Indian firms which have stakes in Russian oil and gasoline initiatives are ONGC Videsh Ltd, Oil India, Bharat Petroleum Corp Ltd, Indian Oil Corp.
On 14 March, Mint reported that these firms have been unable to entry round $400 million in dividend funds caught in Russia.
India has leveraged its “particular and privileged strategic partnership” with Russia to accumulate stakes in Russian oil and gasoline initiatives. OVL, holds a 26% stake in CSJC Vankorneft, the proprietor of the Vankor Area and North Vankor license. An Indian consortium comprising Indian Oil Corp., OIL, and Bharat Petro Assets additionally holds a 23.9% stake in the identical enterprise, with Rosneft’s affiliate RN Vankor working the sphere with a 50.1% stake.
A consortium of Indian Oil Corp, OIL, and Bharat Petro Assets holds a 29.9% stake in LLC Taas-Yuryakh.
OVL additionally owns 20% of Sakhalin-1 and purchased Imperial Vitality Corp. Plc, which has 10 exploration and manufacturing blocks within the Tomsk area of western Siberia.
In March final 12 months, seven main Russian banks have been faraway from the SWIFT worldwide funds system. SWIFT, collectively owned by 1000’s of economic entities globally, permits for the sleek and safe motion of worldwide funds throughout borders.
It was adopted by value cap on crude oil Russia that got here into impact on 5 December 2022.
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Supply: Live Mint