OREANDA-NEWS. May 17, 2010. The Boards of Directors of Bashneft’s five refining and marketing (R&M) subsidiaries have proposed significantly lower dividends for 2009, according to Vedomosti. Total dividend payment for 2009 should be RUB121.35m which is approximately 60 times less than was paid out in 2008, reported the press-centre of OTKRITIE Financial Corporation.

View: We believe this is not a major surprise for the market, as Bashneft has consolidated cash-flows after its takeover by Sistema. Since the middle of last year, Bashneft has become the profit center of the group and its refining and marketing subsidiaries currently operate on a cost plus basis.