Page 113 - RusRPTJan23

announced. As followed by bne IntelliNews, in March 2022 the EU imposed a ban on imports of a wide range of steel products from Russia as part of the sanctions for the latter's military invasion of Ukraine. NLMK was the only company that continued to earn a positive export margin thanks to its semi-finished steel positions on the European market. The subsequent ban on imports of steel slabs and square billets under the eighth EU sanction package will only affect the company in 2024-2025, leaving NLMK with plenty of time to adjust to new restrictions by 2025.
● Utilities
Inter RAO’s CEO sees no change in dividend distribution policy and reiterates a 25% payout in 2023. For those who were expecting higher payments, that could be a disappointment. However, we remind that Inter RAO’s management for many years resisted investors/shareholders/analysts’ calls for higher payouts. Modest payments imply that cash is accumulating on the balance sheet (company is FCF-positive). Cash accumulation is probably not the optimal capital decision in the eyes of minorities, who would rather prefer a more generous dividend distribution.
● Other
Sistema’s key shareholder said Sistema may pay dividends for 2022.
Vladimir Evtushenkov (49% stake in Sistema) told Interfax that, to his knowledge, Sistema may pay dividends for 2022. He declined to comment on the size, noting that the financial year is not over yet. He also said that Sistema does not plan share buybacks, as far as he knows.
Shareholders of Phosagro also approved a decision on the payment of interim dividends for Q3 2022 in the amount of RUB318 rubles ($4.9) per ordinary share at an extraordinary meeting held on December 8, 2022. "At the EGM, PhosAgro’s shareholders approved a decision to pay out dividends in the amount of RUB318 rubles per ordinary share. The dividend record date was set as 19 December 2022," the report said. In September, shareholders of Phosagro greenlighted the final dividend payout for 2021 and the payment for 1H 2022 in the amount of RUB780 rubles per ordinary share. The company pays dividends each quarter, though in May its board of directors decided to postpone the issue of payments for Q1 2022, whereas in July the company’s shareholders did not take a decision to pay final dividends for 2021 at the annual meeting. Previously the board of directors recommended the dividend payout for Q4 2021 in the amount of RUB390 rubles per share, or RUB130 rubles per GDR.
113 RUSSIA Country Report January 2023 www.intellinews.com