Putin has approved the payment of dividends by state-owned companies 50% of the profits

Vladimir Putin

Photo: Alexei Druzhinin / RIA Novosti / AP

Vladimir Putin has approved the payment of most state-owned companies dividends 50% of net profit, according to first Deputy Prime Minister Igor Shuvalov

The President of Russia Vladimir Putin has approved the head of the government Dmitry Medvedev approach for the payment of most state-owned companies dividends 50% of net profit. This was reported to journalists by the first Deputy Prime Minister Igor Shuvalov, reports “Interfax”.

“The President has approved the government approach on the payment of dividends by state-owned companies mainly 50% of the profits,” said the official.

In mid-April, Shuvalov said that the government believe that state companies should pay maximum dividends. “It’s good for investors, and in order to demonstrate investment attractiveness, so they bought these shares,” — said Shuvalov, noting that “a General solution yet”.

Then the official added that once adopted a final decision about it will be reported to the President. “Proposals such that the most someone can take is to take 50%. And where this is not possible, this must be a good reason, and it should be a complex procedure of adoption of such decision”, — has explained then Shuvalov.

In 2016, the government issued a decree, which obliges state-owned companies to pay dividends for 2015 in the amount of 50% of net profit (under RAS or IFRS, depending on which of amounts is more). The document allowed for different interpretations and, in practice, a number of companies managed to pay dividends in the half of your profit. So, “Rosneft” last year made exceptions for themselves, paid to shareholders 35 instead of 50% of net profit. This year the company will also pay shareholders a 35% profit.

The Finance Ministry had earlier offered to extend the rate of 50% of net profit at least 2017-2019.
  

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