Gazprom to pay Kremlin £8.6bn after record profits
Russian state-backed energy firm Gazprom is poised to hand a bumper £8.6bn payout to the Kremlin after notching up record profits.
The company reported a net profit of 2.5tn roubles (£35.8bn) for the first six months of this year. Oil and gas prices soared during that period, pushed higher by concerns over supplies after Russia’s invasion of Ukraine.
The Kremlin owns 49.3% of Gazprom and will share in a 1.21tn rouble payout, after its board proposed a 51.03 rouble per ordinary share payout to investors. The decision will be put to shareholders at an extraordinary general meeting on 30 September.
The dividend represents a setback in the west’s efforts to choke off the Russian economy through sanctions. The UK and Europe have also moved to phase out Russian oil and gas imports to prevent the west funding Vladimir Putin’s regime. However, Russia has instead ramped up oil exports to Asia and gas prices have soared in response to Gazprom cutting supplies into Europe.
Gazprom’s deputy chief executive, Famil Sadygov, said: “Despite sanctions pressure and an unfavourable external environment, the Gazprom Group reported record IFRS revenues and net profit in the first half of 2022, while reducing net debt and leverage to a minimum.”
The payout follows the decision in June to cancel Gazprom’s annual dividend for the first time since 1998. The decision sent its shares plunging by near 30% in a day.
The dividend decision comes as energy companies and politicians face a nervous wait to see whether Russia switches gas supplies through the Nord Stream 1 pipeline into Europe back on.
Russia said it had stopped the Baltic Sea pipeline’s flow from 5am on Wednesday for three days to carry out repairs.
Gazprom has reduced gas its output in recent
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