Page 109 - RusRPTAug22

8.3.2 Dividends dynamics
● Oil & gas
Gazprom PJSC plunged after shareholders voted against a record 2021 dividend in the last days of June, as the Russian gas giant focuses on paying higher taxes and investing in its domestic network. The decision at the company’s general shareholders meeting means the Russian state, which owns just over 50% of Gazprom, will gain most from the stellar gas-price rally through higher tax revenues. The world’s largest natural gas producer had planned to pay its highest ever dividend for 2021, which would have also benefited private investors. Gazprom’s shares fell as much as 33% in Moscow trading, dropping to lowest levels since Russia’s invasion of Ukraine. Gazprom should be ready to pay higher taxes, Deputy Chief Executive Officer Famil Sadygov said on Gazprom’s Telegram channel.
The Minister of Finance stated SOE dividend policy remains 50% of net income, the first statement on the subject since the replacement of Gazprom’s FY21 payout with higher taxes. Unfortunately, this is unlikely to reassure equity markets. “No one has cancelled” the target of SOEs paying 50% of IFRS net income, stated Russia’s Minister of Finance Anton Siluanov in an interview with Vedomosti. He added that the dividends are a source of budget replenishment, while they motivate the team to manage the rest of the profit more effectively. This came as an answer to a direct question about the cancellation of the 2021 dividend at the AGM on 30 June and the planned increase of 3Q22 taxes by a matching amount.
109 RUSSIA Country Report October 2020 www.intellinews.com