US Sanctions on Russian Oilfield Affect Indian Investments

ONGC Videsh Ltd (OVL) is seeking legal advice after new US sanctions targeted CJSC Vankorneft, a major Russian oilfield in which a consortium of Indian state-owned firms holds a 49.9% stake. The sanctions, aimed at pressuring Russia over the Ukraine war, block entities where Russian firms like Rosneft have a 50% or greater share. While the Indian consortium's stake is just under the threshold, the move creates significant uncertainty and could complicate the repatriation of an estimated $1.4 billion in accumulated dividends.