Severstal promises not to alter dividend policy over export duty

MOSCOW, Jul 16 (PRIME) -- Steel maker Severstal has no plans to change the dividend policy after Russia introduced metals export duties, Deputy CEO for Finance and Economy Alexei Kulichenko said at a conference call on Friday.

"It is obvious that if our free cash flow falls because of the duties, the dividends will fall as well. We have no plans to revise our dividend policies. We will stick to the one we have. It will be paid from the base that we will get, including after the introduced duties," Kulichenko said.

The government approved metal export duties from August 1 until December 31. The payments include a 15% core duty and a surcharge depending on the level of processing.

Kulichenko separately said that as the E.U. plans to introduce carbon regulations, including import duties on steel, Severstal may have to spend an extra U.S. $70 million per year. "We could have paid a  $70 million tax on the difference between the CO2 duty that we would have to pay on top of the duty-free level," he said.

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