Caspian Sunrise’s ability to generate revenue has been severely disrupted by the Ukraine conflict to the extent they are pausing their dividend until the end of the year.
Caspian are required to transport their oil through Russian pipelines, and although they are not subject to sanctions, there is now a discount attached to their product.
The company say they are missing out on $18 million revenue each year as a result.
The company said in a statement:
“Accordingly, and with reluctance, the board has decided to suspend further dividend payments until either the end of the year or following a significant increase in production from Wells 141, 142 or 802 or the receipt of the $22.5 million proceeds from the sale of 50% of the Caspian Explorer.”