Oil India explores route to bring back $300 million stuck in Russia

Oil India is exploring ways to repatriate a $300 million dividend from its investments in two Russian oil assets, with the money currently stranded in Moscow amid Western sanctions, chairman Ranjit Rath told shareholders on Thursday.

“It is only a matter of time. We will be able to find a solution to transfer the amount,” Rath said. The dividend is held in the Moscow branch of State Bank of India. He did not provide details on how the company plans to bring the funds back, Reuters reported.

Oil India, along with Indian Oil Corporation and Bharat PetroResources, holds a 23.9% participating interest in JSC Vankorneft and a 29.9% stake in Tass Yuryakh Neftegazodobycha. The dividend from these investments has remained stuck because of Western sanctions targeting Russian entities and banks following Moscow’s invasion of Ukraine.


The issue comes as Oil India expands its refining and transportation infrastructure at home. Numaligarh Refinery, a subsidiary of Oil India, is expected to commission a 120,000-barrel-per-day crude unit at its refinery in Assam by March. The expansion will take the refinery’s overall crude processing capacity to 180,000 barrels per day.

Oil India is also building a 1,635-km crude pipeline from Paradip port in Odisha to its refinery in Assam. Rath said the pipeline is expected to be commissioned by the end of 2026.

The company has also exited exploration projects in Gabon and Bangladesh, Rath said. Its Numaligarh refinery continues to export diesel to Bangladesh through a pipeline, with Rath saying supplies are continuing and there is no payment backlog.