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ONGC, others stare at impairment losses

Indian organizations’ value of investments in Russia’s oil and gas fields could be impaired as import boycotts and global sanctions may constraint future income-generating capacity, Moody’s Investors Service said Thursday.

Oil and Natural Gas Corporation (ONGC), Oil India Ltd (OIL), Indian Oil Corporation (IOC), and Bharat Petroleum Corporation Ltd (BPCL) have put resources into upstream oil and gas resources in Russia.

“Import bans and international sanctions on Russia may constrain the future cash flow generating capacity of these assets and lead to impairment losses for the companies,” the rating agency said in a note.

“If an increasing number of Russian banks are excluded from the main financial messaging SWIFT system, Indian companies might not be able to receive future dividends from their upstream investments in Russia”.

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