8 bn rubles of Indian oil companies caught in Russia
As a lot as 8 billion rubles (about Rs 1,000 crore) of dividend earnings belonging to Indian oil companies is caught in Russia after the Putin administration clamped down on greenback repatriation, officers stated on Friday.
Indian state oil companies have invested USD 5.46 billion in shopping for stakes in 4 completely different property in Russia. These embody a 49.9 per cent stake in Vankorneft oil and fuel subject and one other 29.9 per cent in TAAS-Yuryakh Neftegazodobycha fields. They get dividends on income made by the working consortium from promoting oil and fuel produced from the fields.
“We had been regularly getting our dividend income from the projects but since the war in Ukraine led to volatility in foreign exchange rates, the Russian government has put restrictions on repatriation of dollars from that country,” stated Harish Madhav, Director (Finance), Oil India Ltd, which is without doubt one of the companions within the fields.
The dividend from TAAS was paid on a quarterly foundation whereas Vankorneft’s earnings have been paid half-yearly.
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“About 8 billion rubles of dividend income belonging to the Indian consortium is left (in Russia),” he stated. “It is not a very large sum of money.” All dividend earnings previous to the Ukraine battle was repatriated however the one which accrued after that’s caught, he stated, including the state of affairs was not alarming and the Indian companies are assured of getting the cash as soon as the battle ends.
ONGC Videsh Ltd (OVL), the abroad arm of state-owned Oil and Natural Gas Corporation (ONGC), holds 26 per cent stake in Suzunskoye, Tagulskoye and Lodochnoye fields — collectively often called the Vankor cluster within the north-eastern a part of the West Siberia.
Indian Oil Corp (IOC), Oil India Ltd (OIL) and Bharat PetroResources Ltd (a unit of Bharat Petroleum Corp Ltd or BPCL) maintain one other 23.9 per cent. Russia’s Rosneft is the operator with 50.1 per cent curiosity.
The consortium of OIL, IOC, and Bharat PetroResources has a 29.9 per cent stake in TAAS-Yuryakh Neftegazodobycha.
The operations of the fields haven’t been impacted and so they proceed to supply as regular.
OIL Chairman and Managing Director S C Mishra stated the corporate’s investments haven’t been impacted by the Russia-Ukraine battle.
Asked if OIL is in dialogue with any of the international firms exiting Russia due to its invasion of Ukraine, Madhav stated, “We are not. OVL or others may be talking but nothing has reached us. We don’t know.” OVL additionally has a 20 per cent stake within the Sakhalin-1 oil and fuel subject in Far East Russia, and in 2009 acquired Imperial Energy, which has fields in Siberia, for USD 2.1 billion.
