25% payout by stateowned companies under final stage of consideration - positive for Transneft and state-owned energy companies
News: According to Izvestia, Russia has budgeted for dividends from stateowned companies almost doubling: from RUB 85bn in 2011 to RUB 150bn in 2012-14. The proposal of the Ministry for Economic Development setting a 25% regulatory dividend payout requirement for state-owned companies and their subsidiaries is at the final stage of consideration, according to the paper.
Separately, the Ministry of Finance is insisting that Rosneftegaz and Zarubezhneft transfer 95% of their earnings, although this has faced strong resistance from the Ministry of Energy.
Our View: The continued focus on increasing payouts by state-owned companies will likely be perceived positively by the markets, with the companies most affected being in the energy sphere. Transneft is arguably the most leveraged to potential changes in the dividends approach: its dividend yield might increase from 1.5% to 6.6% if it gets approved, although the company itself has been lobbying against this. It has stated that dividends should only be increased after the investment programme has been completed, somewhere after 2015.
Back to top Olga Danilenko