Indian companies with stakes in Russian assets can’t repatriate 8 billion rubles in dividends
New Delhi:
Indian companies with interests in two Russian assets are unable to repatriate 8 billion rubles ($125.49 million) in dividends due to tough Western sanctions, an official at Oil India Ltd said Friday.
A consortium comprising Oil India, Indian Oil Corp and Bharat Petroleum Corp owns 23.9 percent of Russia’s Vankorneft oil project and 29.9 percent of the Tass-Yuryakh oil field in eastern Siberia.
A dividend is paid quarterly for Tass-Yuryakh and semi-annually for Vankor fields.
“Our dividend is in Russian banks and we can’t get it due to rapid approval issues and other issues,” Harish Madhav, oil India’s chief financial officer, said at a press conference to announce the company’s quarterly results.
European countries and the United States have imposed heavy sanctions on Russia since Moscow sent troops to Ukraine on February 24, but India has not explicitly condemned the action.
The net profit of state-owned Oil India rose 92.32 percent to 16.30 billion rupees ($210.20 million) in the March quarter as crude oil prices rose.
Oil India chairman SC Mishra said the central government is “looking into” the departure of companies from Russia and that a consortium of Indian companies could consider buying stakes in those assets. “So far there has been no aggressive approach from us,” he added.
Reuters reported last month that India has asked state energy companies to evaluate the possibility of buying Russian oil and gas assets shunned by BP and Exxon Mobile Corp in Russia.
Shell is also in talks with Indian companies to sell its stake in a major liquefied natural gas plant in Russia, sources told Reuters.
India’s largest gas station GAIL India Limited is open to buying ailing Russian oil and gas assets if the deal makes commercial sense, the chairman said earlier on Friday.
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