Key Points of Indian Oil Companies Dividend From Russian Ventures:
- Indian oil companies are missing out on $300-$400 million dividends from their investments in Russian oil and gas projects due to Western sanctions imposed on Moscow.
- The affected Indian companies include ONGC, Oil India, BPCL, and Indian Oil.
- The Indian government is currently negotiating a solution to resolve the issue.
- The problem arises due to the unavailability of banking channels after Russia was removed from the SWIFT global payment system by the US.
- Despite the sanctions, Russia has become one of the largest crude oil suppliers to India.
- The share of Russian crude in India’s oil import has risen from 0.2 percent in January 2022 to over 30 percent in March 2023.
- Russia is diverting the supply of its crude oil to Asian countries, especially India and China, and providing it at a discounted price.
- In March 2023, Russia surpassed traditional crude oil suppliers to India such as Saudi Arabia and Iraq by providing 1.64 million barrels per day (bpd), making it the top supplier of crude oil to India.
Details of Indian Oil Companies Dividend From Russian Ventures:
Russian-Ukrainian conflict causes Indian oil companies to miss out on $300-$400 million dividends
As of April 2023, Indian oil companies are yet to receive dividends worth $300 million to $400 million from their investments in Russian oil and gas projects, which have been hindered by the Western sanctions imposed on Moscow following the ongoing war with Ukraine. The affected companies include ONGC, Oil India, BPCL, and Indian Oil.
According to a senior petroleum ministry official, the Indian government is currently exploring ways to resolve the issue, which arises due to the unavailability of banking channels after Russia was removed from the SWIFT global payment system by the US.
Despite the sanctions, Russia has become one of the largest crude oil suppliers to India, with the share of Russian crude in India’s oil import increasing from 0.2 percent in January 2022 to over 30 percent in March 2023. As Russia diverts the supply of its crude oil to Asian countries, particularly India and China, it is offering it at a discounted price.
In March 2023, Russia surpassed traditional crude oil suppliers to India such as Saudi Arabia and Iraq by providing 1.64 million barrels per day (bpd), making it the top supplier of crude oil to India. The issue of missing dividends remains unresolved as the Indian government continues negotiations to find a solution.
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