ONGC Videsh has less than $100 mn stuck in Russia, says official

NEW DELHI: India’s flagship overseas firm ONGC Videsh has less than $100 million of dividend income lying in Russia because of Ukraine conflict but the company is not in a hurry to bring it back, a senior official said on Monday.

Indian state oil firms have invested $5.46 billion in buying stakes in four different assets in Russia. These include a 49.9 per cent stake in the Vankorneft oil and gas field and another 29.9 per cent in the TAAS-Yuryakh Neftegazodobycha fields.

They get dividends on profits made by the operating consortium from selling oil and gas produced from the fields. Soon after invading Ukraine in February last year, Russia put restrictions on repatriation of dollars to check volatility in foreign exchange rates.

OVL, the overseas arm of stateowned Oil and Natural Gas Corporation (ONGC), got its last dividend back in July 2022. One dividend payout that came after that is lying in the company’s account in Russia.

Its managing director Rajarshi Gupta said the dividend income lying in Russia is “less than $100 million.” “We are not in a hurry to get it back as the company has capital and operating expenses for the three projects in Russia,” he said.

“It is business as usual as far as dividend is concerned.” OVL holds interest in Russia through a Singapore subsidiary.

Moscow declared Singapore as an unfriendly nation last year and so money from Russia cannot flow to any company incorporated in that country.

He said the company is looking at right banking channels and discussions are on. Last week, Oil India officials said $300 million dividend income of the company and its partners are stuck in Russia.

The consortium of OIL, Indian Oil Corporation and Bharat PetroResources Ltd has stakes in two projects.

The $300 million dividend was lying with the Commercial Indo Bank LLC, which was a joint venture of State Bank of India and Canara Bank. Canara Bank in March sold its 40 per cent stake in CIBL to SBI.

Indian state oil firms have invested $5.46 billion in buying stakes in four different assets in Russia