OREANDA-NEWS. February 19, 2009. Russian authorities have opted not to shock minority shareholders of large state-run companies with a directive on cutting out dividend payouts. Shareholders of Transneft, Gazprom, and Rosneft expect to see decent FY 2008 payouts if these are approved by the management of the companies, sources close to economic agencies said.

In late 2008, officials discussed the possibility of obliging state-controlled companies to refrain from dividend payouts in order to allocate the saved resources to development. “A reduction or failure to pay out dividends... could result in lower personal income and create unfavorable social consequences”, a source from an economic agency quoted the substantiation received from the Economic Development Ministry. The decision concerns holders of “preferred shares of state-run companies” and shares in companies “with a large number of shareholders which own minority stakes”. “It seems that a proposal to reduce dividend payouts was not favored by (First Vice PM Igor) Shuvalov”.