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30 Jun, 2022 10:07

Gazprom stock plunges on key shareholder decision

The company has decided against paying dividends based on its 2021 results
Gazprom stock plunges on key shareholder decision

Shares in Russian energy giant Gazprom fell by more than 30% on Thursday morning after the company announced it would not be distributing dividends based on its 2021 results.

Gazprom was trading at 207.69 rubles per share at 07:57 GMT, having dropped by 32.32% since Wednesday, data from the Moscow Exchange shows.

Earlier on Thursday, the company announced it would not be paying dividends this year, which amounted to 52.53 rubles per share, or 1.244 trillion rubles in total. Gazprom said the decision was made at an annual shareholder meeting on Wednesday.

Shareholders have decided that, in the current situation, it is inappropriate to pay dividends for 2021. Currently, Gazprom’s priorities are the implementation of the investment program, including the gasification of the regions and preparation for the coming winter. And, of course, we must be ready to fulfill our tax obligations,” deputy chairman of Gazprom’s Board, Famil Sadygov, said earlier on Thursday, as quoted by RBC.

The decision stems from additional taxes that Gazprom may have to pay for the period from September to November 2022, RBC reported, citing one of the firm’s shareholders. The proposal to demand additional taxes from Gazprom was put forward by Russia’s Finance Ministry earlier this month, and the State Duma is to decide whether or not to introduce the measure at a meeting later on Thursday.

The Russian stock market followed Gazprom’s plunge. The ruble-denominated Moscow Exchange index (MOEX) fell by 6.78% to 2217.41 points, while the dollar-denominated RTS index fell by 6.35% to 1321.78 points as of 07:58 GMT.

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