The share of Russian energy giant Gazprom has lost more than a quarter of its market value today after the state-owned company decided not to distribute dividends, for the first time since 1998.
“Shareholders have decided that in the current situation it is not appropriate to distribute dividends based on the results of 2021,” said Family Sedigov, Deputy Chairman of Gazprom in a press release. This coming winter. In addition, we must undoubtedly be willing to meet our obligations to pay increased taxes. ”
The decision, according to reports, was contrary to the board’s recommendation for a dividend of 52.53 rubles (about $ 1) per share. In response to the report, Gazprom’s share price fell 27% before the Moscow Stock Exchange intervened to stop trading.
In 2021, Gazprom reported record profits thanks to rising commodity prices, but a host of economic sanctions following the Russian invasion of Ukraine threaten to hurt its revenues. In recent weeks, there has been reduced Russian gas flow to Europe through the Nord Stream 1 pipeline following the continuation of hostilities.
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