Rosneft PJSC, which is Russia’s biggest oil company, has promised record dividends because oil prices are going up. However, some foreign investors may have trouble getting the money.
The board recommended 23.63 rubles per share for the second half of 2021, bringing full-year dividends to an all-time high of 41.66 rubles. This comes after the Russian gas giant Gazprom PJSC said last week that it would pay its highest dividend ever because of a supply shortage in Europe.
As the largest shareholder in both companies, the Russian government will derive the greatest benefit from their decisions. Because of President Vladimir Putin’s rules, it may be hard for many foreign investors to get their money back.
According to a March regulation, Russian enterprises are required to transfer funds owed to investors or lenders from “hostile states” to designated ruble bank accounts. According to the Russian central bank, you need special permission to move money from certain accounts or exchange it for a different currency.
Rosneft’s record payout follows record earnings in 2021 as global oil consumption recovered from the pandemic, causing prices to rise. According to international financial reporting standards, the company pays out 50% of its net income.
At 12:27 p.m. in Moscow, Rosneft shares fell 2% to 393.50 rubles, erasing earlier gains as the Russian stock market declined. At the annual shareholder meeting on June 30, shareholders will vote on the dividend recommendation.
BP Plc is the oil producer’s second-largest shareholder, with a 19.75 percent stake.In response to Russia’s invasion of Ukraine, the UK’s largest energy company announced at the end of February that it would sell its stake in Rosneft.
The Qatar Investment Authority manages QH Oil Investments, in which it holds an 18.46% stake. Qatar, on the other hand, is not on the list of “hostile states” that the Russian government put out in March.
