Gazprom skips payout in a first since 1998; stock dips nearly 27%

Russian gas giant Gazprom has decided not to pay dividends on last year’s results, the first time it will not pay out since 1998, sending its shares plunging 27 per cent.

“The shareholders decided that in the current situation it is not advisable to pay dividends based on the 2021 results,” Deputy CEO Famil Sadygov said.

He added that Gazprom would rather focus on Russian regional gasification, preparation for the heating season and paying increased taxes.

Gazprom shares plunged by more than 27 per cent on the decision, which reversed a board recommendation to pay a dividend of 52.53 roubles per share in what would have been its biggest payout.

The Russian rouble rose on Thursday, heading towards its strongest levels since 2015 as it retained support from high commodity prices. 

Against the euro, the rouble rose 2.5 per cent to 54.61 , having climbed beyond 53 earlier this week for the first time since April 2015.

The rouble has become the world’s best-performing currency this year, boosted by measures taken to shield Russia’s financial system from Western sanctions imposed after Moscow sent troops into Ukraine on Feb 24. 

Russian forces abandoned the strategic Black Sea outpost of Snake Island on Thursday, in a major victory for Ukraine that could loosen a Russian grain export blockade threatening to worsen global hunger.

Ukraine said it had driven the Russian forces out after a massive artillery and assault overnight.

Russia said over 6,000 Ukrainian servicemen have been captured or surrendered, RIA news agency cited the defence ministry as saying on Thursday.

The ministry said the exchange of 144 prisoners of war with Ukraine, announced on Wednesday by Ukrainian intelligence, was organised by direct order of President Vladimir Putin, RIA cited the ministry as saying.