Russian min hopes to earn 270 bln rbl from 50% divs rule in 2017

MOSCOW, Oct 3 (PRIME) -- The Russian Finance Ministry has forecasted a 269 billion ruble revenue in 2017 from an earlier introduced obligatory dividend payment of half of net profit for state companies, according to documents seen by PRIME on October 1.

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 Finance Ministry submitted in September a draft ruling to prolong the order indefinitely.

According to the documents presented by the ministry, the 2018 budget revenue from the measure is expected at 274 billion rubles and at 288 billion rubles in 2019.

Prolongation of a higher mineral extraction tax (MET) into 2017–2019 will bring 170 billion rubles to state budget annually, while an increase of excises on oil products will contribute 50 billion rubles in 2017, 75 billion rubles in 2018 and 90 billion rubles in 2019.

The ministry has also included a 6 billion ruble annual income from privatization over the three-year period.

(63.3960 rubles – U.S. $1)

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