Why Indian oil firms have $1.4 billion stuck in Russia
For over three years, Indian government oil companies have had $1.4 billion in dividends trapped in Russia, thanks to investments in crucial energy projects.
These funds—earned from over $6 billion poured into Russian oil and gas by ONGC Videsh and a consortium including Indian Oil Corporation, Oil India, and Bharat PetroResources—can't make their way home because of global sanctions after Russia's invasion of Ukraine back in 2022.
Why can't the money come home?
Sanctions cut off Russia from the SWIFT banking system and blocked dollar transfers, so even though the dividends are paid (in rubles) to an Indian bank's Russian branch, they're stuck there.
Some investments go through places like Singapore, which only adds more legal knots to untangle.
Attempts to use stuck funds
Indian firms have tried using these stuck funds for project costs or payments inside Russia, but most projects don't need much new cash right now—and paying for imports with these rubles is tricky due to taxes and more sanctions rules.
Despite ongoing talks between companies and the government, everyone's still searching for a solution.
It's a real-world lesson on how global politics can freeze big money—and big plans—in place.