As much as 8 billion rubles (about Rs 1,000 crore) of dividend income belonging to Indian oil companies is stuck in Russia after the Putin administration clamped down on dollar repatriation, officials have said. Indian State oil companies have invested $5.46 billion in buying stakes in four different assets in Russia. These include a 49.9 per cent stake in Vankorneft oil and gas field and another 29.9 per cent in TAAS-Yuryakh Neftegazodobycha fields. They get dividends on profits made by the operating consortium from selling oil and gas 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,” Harish Madhav, Director (Finance), Oil India, has said.  

The dividend from TAAS was paid on a quarterly basis, while Vankorneft’s earnings were paid half-yearly. “About 8 billion rubles of dividend income belonging to the Indian consortium is left (in Russia),” he has said.

All dividend income prior to the Ukraine war was repatriated, but the one that accrued after that is stuck, he said, adding the situation was not alarming and the Indian companies are confident of getting the money once the conflict ends.