Gazprom says shareholders vote for paying no 2021 dividends

MOSCOW, Jun 30 (PRIME) -- The shareholders of Russian gas giant Gazprom have decided against paying dividends for 2021 in favor of investment, the company said in a statement on Thursday.

“The shareholders decided that given the current situation, it was unreasonable to pay final dividends for 2021,” the company said quoting Deputy CEO Famil Sadygov.

The company thinks that it should prioritize its investment program, including improvement of the regional gas distribution infrastructure, and preparations for the next winter. The company also has to pay higher taxes, Sadygov said.

In May, the company’s board of directors recommended paying 52.53 rubles per common share in dividends for 2021. Gazprom paid 12.55 rubles per share, or a total of 297.103 billion rubles on 2020 results.

But in June the budget and tax committee of parliament’s lower chamber State Duma approved an amendment to the Tax Code that encompasses a one-time 416 billion ruble increase of the mineral extraction tax (MET) for Gazprom for the period from September 1 through September 30.

(51.1580 rubles – U.S. $1)

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