Page 103 - RusRPTFeb23

A few shares even gained in value. Fertiliser maker PhosAgro saw its shares rise by 7%, as fertilisers have been exempted from sanctions as part of the efforts to avoid a global food crisis.
Liquid and in profit, PhosAgro continued to pay dividends, and global fertiliser prices rallied on the warnings of a food crisis, making these shares something of a safe haven.
8.3.2 Dividends dynamics
● Metal & Mining
At an EGM on December 31, NLMK shareholders voted against the recommended interim dividend payment of R2.6 per share for 9m22, which implied a modest 2% yield at the time. NLMK assumes that the main factor behind shareholders' rejection of the recommended dividend was the high level of economic and geopolitical uncertainty. Dividends for the full year 2022 will be considered at the AGM planned for June. Despite this unexpected decision, we still think that NLMK could return to dividend distribution later this year given its solid FCF generation last year (yielding around 18%, according to our estimates). We maintain a positive view on NLMK (and the other steel names), also taking into account the robust demand for steel in the domestic market and the ruble's recent depreciation, which has improved the economics of exports.
103 RUSSIA Country Report February 2023 www.intellinews.com