Subscription and demo access


 
About Interfax
Press Releases
Products & Services
Contact us
Customer Login
 


Headlines
 

05/28 13:02   Bill criminalizing enforcement of sanctions should not hamper investment - Peskov
 
05/28 13:01   NATO's expansion inevitably prompts Russia to take countermeasures - Peskov
 
05/28 13:00   MICEX and RTS Indexes at 13:00 MSK
 
05/28 12:59   Putin may meet with UAE delegation during its visit to Moscow - Peskov
 
05/28 12:57   Moscow, Paris agree JCPOA should remain in force - Kremlin
 
05/28 12:53   PROSECUTOR ASKS TO FIND UKRAINIAN SUSHCHENKO GUILTY OF ESPIONAGE, SENTENCE HIM TO 14 YEARS IN PENAL COLONY - LAWYER
 
05/28 12:51   Gornin appointed First Deputy Finance Minister
 
05/28 12:48   GROWTH OF INVESTMENT DEMAND IN RUSSIA HAS SLOWED, CENTRAL BANK WILL ANALYZE THIS WHEN ADJUSTING ITS FORECAST - YUDAEVA
 
05/28 12:48   LAVROV: SYRIAN FORCES SHOULD BE STATIONED ON SYRIAN-JORDANIAN BORDER, ALL OTHER UNITS SHOULD BE WITHDRAWN FROM THIS AREA
 
05/28 12:48   PESKOV DOESN'T RULE OUT THAT PUTIN WILL MEET WITH UAE DELEGATION DURING ITS VISIT TO MOSCOW
 


 

Interfax.com  |  Interfax news  |  Rosimushchestvo favors 50% level for state...


News headlines


April 21, 2017 15:49

Rosimushchestvo favors 50% level for state company dividends, vows individualized approach (Part 2)

MOSCOW. April 21 (Interfax) - Russian state property agency Rosimushchestvo shares the Finance Ministry's position that the state companies should pay at least 50% of earnings as dividends, agency head Dmitry Pristanskov said.

At the same time, Rosimushchestvo will take an individualized approach that considers the impact dividend payments will have on investment program implementation.

"You are aware that this year's budget assumes that the state companies will pay at least 50% of IFRS profits as dividends. We adhere to this policy together with the Finance Ministry," Pristanskov said, adding: "achievement of strong financial indicators is only possible given efficient corporate governance."

"We see use of an individualized approach in calculating dividend payments of stock companies, taking into account an analysis of the impact a high dividend payment level has on the corresponding programs of each company individually, as one of the main tasks in 2017," he said.

The 50% level was in effect last year as well. "That said, decisions on the size of dividends were implemented taking into account the effect, of course, on the financial condition of the company, on the need for those companies to implement documents of a strategic nature, long-term programs of development, investment programs," Pristanskov said.

The debate over the share of earnings the big state companies should pay as dividends for 2016 has continued for months. It never really ended last year, even after the 50% minimum requirement was in put into effect, since so many companies managed to win exceptions for themselves. A meeting chaired by First Deputy Prime Minister Igor Shuvalov in the middle of December resulted in the approval of the principle that a minimum of 25% of net profit should be paid. Based on an audit of the specific company (its investment program, the size of debt, ability to service debt and so on), the final dividend percentage might be higher. Nonetheless, the Finance Ministry continues to insist that the 50% standard be extended. That is the level of dividend revenue assumed in the 2017 budget. Moreover, a letter from Rosimushchestvo in preparation for another meeting Shuvalov held in mid-March recommended that the state companies pay at least 50% of net profit (adjusted for exchange rate gains).

The authorities want the 50% standard to apply to a maximum number of state companies, but there will be no one-size-fits-all approach, Shuvalov said last week.

"We are working out the approaches now. The proposals now are that a maximum of 50% be taken, from those that can afford it. Where that is impossible, there must be weighty reasons and there must be an involved procedure for taking such decisions," he said. "For dividends we haven't arrived at an overall decision yet. We are orienting the companies toward paying the maximum: this is good for investors and for demonstrating some kind of investment appeal, so that they buy these shares. Overall, we believe that now is the time when dividends up to 50% may be paid. For some companies, it is the opposite, from 50% and lower," he said.

Finance Minister Anton Siluanov has said repeatedly in recent weeks that his ministry's position is unchanging. "I reiterate that in the current conditions, when the state is not raising the tax burden, we can demand a minimum of one half of distributable earnings," Siluanov said. By lobbying for a lower dividend payment, top executives at the state companies raise questions about their own effectiveness, he said.

In the case of Rosneft (MOEX: ROSN), the dispute over dividends resulted in two different draft directives for the board of directors at the oil giant, which the state controls via Rosneftegaz: Rosimushchestvo drafted a directive stipulating payment of 50% of IFRS net profit as dividends, while the Energy Ministry calls for payment of 35%.

Gazprom (MOEX: GAZP), another state-controlled energy giant that is a major source of dividend income for the budget, wants to hold its dividends for 2016 at the 2015 level: 7.89 rubles per share. The budget currently assumes Gazprom will pay 18.86 rubles per share (50% of projected IFRS net profit). Based on preliminary estimates from analysts, the dividend proposed by management is only about 20% of the IFRS net profit in 2016. The board of directors must make a final decision on the size of the dividend in May.

jh aa

(Our editorial staff can be reached at eng.editors@interfax.ru)

/Interfax/
 Subscription
You can access a demo version of, receive more information about or subscribe to Interfax publications by filling in and returning the form below. We also have dozens of reports in the Russian language, please indicate if you are interested.
Title:


Phone:


E-mail:


First name:


Company:


Country:
Last name:


Division:


City:
Products:
Central Asia & Caucasus Business Weekly
Central Asia General Newswire
Global Gas Analytics
Global Natural Gas Daily
Interfax Via Bloomberg Terminal
Kazakhstan General Newswire
Kazakhstan Mining Weekly
Kazakhstan Oil & Gas Weekly
Russia & CIS Announcements
Russia & CIS Banking and Finance Weekly
Russia & CIS Business and Financial Daily
Russia & CIS Business and Financial Newswire
Russia & CIS Business and Investment Weekly
Russia & CIS Business Law Weekly
Russia & CIS Business news
Russia & CIS Defense Industry Weekly
Russia & CIS Diplomatic Panorama
Russia & CIS Energy Daily
Russia & CIS Energy Newswire
Russia & CIS Events Calendar
Russia & CIS Food and Agriculture Weekly
Russia & CIS General Newswire
Russia & CIS Headline News
Russia & CIS Insurance Weekly
Russia & CIS IT and Telecom Weekly
Russia & CIS Metals and Mining Weekly
Russia & CIS Military Daily
Russia & CIS Military Newswire
Russia & CIS Military Weekly
Russia & CIS Oil and Gas Weekly
Russia & CIS Presidential Bulletin
Russia & CIS Statistics Weekly
Russia Health & Pharmaceuticals
Russia Market Roundup
Russia Press Review
Ukraine Business Daily
Ukraine Business Weekly
Ukraine General Newswire
Please enter the digits from picture in the box below:

May 28, 2018
 
12:48
GROWTH OF INVESTMENT DEMAND IN RUSSIA HAS SLOWED, CENTRAL BANK WILL ANALYZE THIS WHEN ADJUSTING ITS FORECAST - YUDAEVA
 
12:48
LAVROV: SYRIAN FORCES SHOULD BE STATIONED ON SYRIAN-JORDANIAN BORDER, ALL OTHER UNITS SHOULD BE WITHDRAWN FROM THIS AREA
 
12:48
PESKOV DOESN'T RULE OUT THAT PUTIN WILL MEET WITH UAE DELEGATION DURING ITS VISIT TO MOSCOW
 
12:48
MOZAMBIQUE FOREIGN AFFAIRS MINISTER EXPECTING ROSNEFT, EXXONMOBIL CONSORTIUM TO SIGN AGREEMENT TO DEVELOP GAS FIELDS IN MOZAMBIQUE
 
12:47
LAVROV ON REPORTS ABOUT WITHDRAWAL OF U.S. FORCES FROM SYRIA'S AT TANF: I HOPE FOR PRACTICAL IMPLEMENTATION OF THESE PLANS
 
12:47
LAVROV: PRESENCE OF TERRORISTS IN AT-TANF CONTRAVENES AGREEMENTS OF RUSSIA, U.S., JORDAN ON DE-ESCALATION AREA IN SOUTHERN SYRIA
 
12:47
SG-Trans to form JV to build, operate railcars with India's Jindal
 
12:46
RUSSIAN, U.S. MILITARY, DIPLOMATS REMAIN IN TOUCH ON SITUATION IN SYRIA'S AT TANF - LAVROV
 
12:44
Inflation risks fell in Russia in April, but still not depleted - Yudayeva
 
12:43
Hezbollah assisting in Russian military effort in Syria - expert
 
12:41
Yakutia head resigns
 
12:39
RUSSIAN CENTRAL BANK NOT RULING OUT ADJUSTMENT TO 2018 RUSSIAN GDP FORECAST, BUT FIGURES WILL BE CLOSE TO CURRENT ESTIMATES - YUDAEVA
 
12:36
INFLATION RISKS IN RUSSIA LOWER COMPARED TO APRIL, BUT STILL NOT DEPLETED - CENTRAL BANK FIRST DEPUTY GOVERNOR YUDAYEVA
 
12:33
Kazakh official concerned about increasing palm oil imports
 
 more headlines 



Interviews
 

.
The director of the Executive Committee of the SCO Regional Anti-Terrorist Structure, Yevgeny Sysoyev, gave an interview to Interfax in which he discussed threats that Russia and the world face in the light of ISILs transformation, as well as the structures achievements in the fight against terrorism.

more
.
.
Ahead of his visit to Moscow newly-elected Austrian Chancellor Sebastian Kurz has given an interview to Olga Golovanova for Interfax. In the interview he speaks about his expectations from the upcoming meeting with the Russian president, his vision of solving the energy-security problem in Europe, the migration crisis, and explains conditions under which some sanctions could be lifted from Russia.

more
.
.
Palestinian Ambassador to Russia Abdel Hafiz Nofal has given an interview to Interfax correspondent Veronika Vishnyakova ahead of a visit of Palestinian leader Mahmoud Abbas to Russia in which he speaks about the main topics of the upcoming Russian-Palestinian summit, prospects for the Palestinian-Israeli settlement and the initiative of creating a new mediating mechanism for the Palestinian-Israeli settlement.

more

 
  
 ©   1991—2018   Interfax Information Service. All rights reserved.
contact information   |   Interfax offices   |   made by web.finmarket

News and other data on this site are provided for information purposes only, and are not intended for republication or redistribution. Republication or redistribution of Interfax content, including by framing or similar means, is expressly prohibited without the prior written consent of Interfax.

Browse other Interfax sites:  Interfax.ru   |   IFX.RU   |   Interfax Group   Rambler's Top100