Agencies-Gaza post
Gazprom stock plummets after key shareholder’s decision
Shares in Russian energy giant Gazprom fell more than 30% Thursday morning after the company said it would not pay dividends based on its 2021 results.
Gazprom was trading at 207.69 rubles per share as of 07:57 GMT, after falling 32.32% since Wednesday, Moscow Stock Exchange data showed.
Earlier Thursday, the company announced it would not pay a dividend this year, which totaled 52.53 rubles per share, or a total of 1.244 trillion rubles. Gazprom said the decision was made at an annual general meeting on Wednesday.
“Shareholders have decided that it is inappropriate to pay dividends for 2021 in the current situation. Currently, Gazprom’s priorities are the implementation of the investment program, including gasification of the regions and preparation for the coming winter. And of course, we must be prepared to meet our tax obligations,‘ Gazprom Deputy CEO Famil Sadygov said earlier on Thursday, as quoted by RBC.
The decision is based on additional taxes that Gazprom may have to pay for the period from September to November 2022, RBC reported, citing one of the company’s shareholders. The proposal to require additional taxes from Gazprom was put forward by Russia’s Finance Ministry earlier this month, and the State Duma is due to decide whether or not to introduce the measure at a meeting later on Thursday.
The Russian stock market followed the collapse of Gazprom. The ruble-denominated Moscow Stock Exchange Index (MOEX) fell 6.78% to 2217.41 points, while the dollar-denominated RTS index fell 6.35% to 1321.78 points by 07:58 GMT.
