Public sector company Oil India has been unable to transfer a $300 million dividend from its investment in Russian oil companies, according to a recent report by Reuters. As per the report, the Indian state-owned company has a stake in Russian oil fields, which were recently sanctioned by the United States.
The reports say that Oil India’s funds earned through dividends are currently held in a Russian bank, and it is unable to transfer those funds due to US sanctions, the company’s Chairman Ranjit Rath said to Reuters. According to the international news agency, he also added that the company is seeking legal opinion in the matter.
According to Reuters, Oil India, along with Indian Oil Corporation and Bharat PetroResources, holds a 23.9 per cent participating interest in Russia’s JSC Vankorneft and a 29.9 per cent stake in Tass-Yuryakh Neftegazodobycha, another Russian company. Both Russian companies were sanctioned by the United States.
Indian Oil made an investment in the Russian oil companies through Singapore-based special purpose vehicles.
Indian companies hold Russian oil orders
Reuters report stated that Indian petroleum companies have not placed new orders for Russian oil purchases since sanctions were imposed. The companies are awaiting clarity from the government and suppliers.
The report notes that some Indian companies are tapping spot markets to meet their crude oil demands. As per the report, Indian Oil has issued a tender for the purchase of oil, while Reliance Industries has boosted purchases from spot markets.
“We have not placed orders yet for fresh cargoes and have cancelled some that were booked from traders with links to the sanctioned entities”, a Reliance Industries source told Reuters.