Public sector enterprise Oil India Limited has been unable to transfer dividends worth $300 million from its investments in Russian oil companies recently sanctioned by the United States, according to a report by Reuters.

Oil India’s dividend earnings are currently held in a Russian bank and cannot be moved due to the sanctions, the company’s Chairman Ranjit Rath told Reuters. He added that the firm is seeking legal opinion to resolve the issue.

Oil India, along with Indian Oil Corporation (IOC) and Bharat PetroResources, collectively holds a 23.9 per cent interest in Russia’s JSC Vankorneft and a 29.9 per cent stake in Tass-Yuryakh Neftegazodobycha, both of which have been targeted by US sanctions.

Indian Oil made its investment in the Russian ventures through Singapore-based special purpose vehicles (SPVs). Since the sanctions took effect, Indian petroleum companies have reportedly refrained from placing new orders for Russian crude.

According to Reuters, companies are awaiting guidance from the Indian government and clarity from suppliers before resuming purchases. In the meantime, several firms are turning to the spot market to meet their crude requirements.

Indian Oil has issued a tender for oil procurement, while Reliance Industries has increased its spot market purchases.

A Reliance Industries source told Reuters, “We have not placed orders yet for fresh cargoes and have cancelled some that were booked from traders with links to the sanctioned entities.”

The sanctions have complicated financial transactions and trade flows between Indian companies and Russian partners, posing challenges to dividend repatriation and crude sourcing.