UPDATE 2: Putin approves 50% net profit in divs rule for state cos

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MOSCOW, Apr 27 (PRIME) -- Russian President Vladimir Putin has approved a proposal to make state companies pay 50% of their net profit in dividends, First Deputy Prime Minister Igor Shuvalov told reporters on Thursday.

“The president has approved an approach presented by the prime minister on payment of 50% of net profit in general by all state companies,” Shuvalov said.

A government official familiar with the situation told PRIME earlier on Thursday that the Russian budget is to receive about 150 billion rubles of state companies’ dividends for 2016.

“I think that overall, about 150 billion rubles of dividends of state companies for 2016 can be collected,” the official said.

The Finance Ministry earlier submitted a draft order to the government, demanding 50% of net profit in dividends from all state-run companies. Budget revenue was calculated basing on the rule but a final decision has not been made.

The source said that state companies will mostly follow the 50% dividend rule but individual decisions can be made for state oil and gas holding Rosneftegaz.

Rosneft, owned by the state via Rosneftegaz, will pay 35% of the net profit under International Financial Reporting Standards (IFRS) in dividends in accordance with an agreement made in December 2016 during privatization of a 19.5% interest in the company, the source said.

“Rosneft will pay 35% in dividends. Just that, this was stipulated during the sale of the stake in the company in order to raise its investment attractiveness,” the official said.

(56.3131 rubles – U.S. $1)

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