Archive · 18 Sep 2025
Indian Oil Firms' $1.4B Dividends Stuck in Russia Amid Sanctions
Imagine Indian oil companies earning money from their investments in Russian oil projects.
This money, which is about $1.4 billion, is stuck in Russian banks.
Because of the war in Ukraine, it's hard to send this money back to India.
Russia's banks can't easily access the global payment system.
This money is earning in rubles, but it cannot be used for investment.
The companies are trying to figure out what to do with it.
It’s difficult to use the money to pay for oil purchased from Russia because of sanctions.
Indian oil companies have approximately $1.4 billion in dividends stuck in Russia.
The funds are from stakes in Russian oil projects.
International payment channel restrictions have prevented repatriation.
The money is accumulating in roubles in Russian banks.
Using the money for payments faces challenges due to sanctions.
- Who
- Indian oil companies (OVL, OIL, IOC, BPCL) and their Russian partners.
- What
- Approximately $1.4 billion in dividends from Russian oil projects are stuck in Russia.
- When
- Since Russia's invasion of Ukraine in February 2022.
- Where
- Moscow, Russia.
- Why
- International payment restrictions and Western sanctions on Russia's financial and energy sectors.
- Stuck Dividends
- $1.4 billion
- Affected Companies
- ONGC Videsh (OVL), Oil India (OIL), Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL)
- Reason for Delay
- International payment restrictions due to Ukraine war
- Accumulation Bank
- Commercial Indo Bank (CIBL)
- Stake in Sakhalin-1
- OVL (20%)
- Stake in Vankor
- OVL (26%), IOC/OIL/BPRL (23.9%)
- Stake in Taas-Yuryakh
- IOC/OIL/BPRL (29.9%)