PRESS: Russian Fin Min wants indefinite prolongation of 50% divs

MOSCOW, Sep 6 (PRIME) -- The Russian Finance Ministry has prepared and sent for government approval a draft order envisaging prolongation of an order for state companies to pay at least 50% of their net profit in dividends indefinitely, business daily Vedomosti reported on Tuesday, citing an official of the ministry.

According to a ruling signed by Prime Minister Dmitry Medvedev in May, a state company must take the highest figure of its net profit – under Russian Accounting Standards (RAS) or under International Financial Reporting Standards (IFRS) – and allocate no less than 50% of the net profit for 2015 dividends.

The ministry official told Vedomosti that the ministry advocates prolongation of the measure because “it seems right from the point of view of the principles of corporate dividend policy.”

A new version of the order would not contain a clause, under which investment programs of companies must be taken into consideration, which allowed gas giant Gazprom to skip 50% dividends for 2015. The official said that the Finance Ministry opposes this earlier incentive.

The Economic Development Ministry supports the project in general and will approve it if the Finance Ministry presents a financial justification of the measure.

Two government officials told Vedomosti that another idea is to make companies pay interim dividends. The measure would firstly cover state energy holding Rosneftegaz.

End