Russia’s Gazprom Cancels Dividend Payment - InvestingChannel

Russia’s Gazprom Cancels Dividend Payment

For the first time since 1998, Russian natural gas giant Gazprom (OGZPY) has decided not to pay dividends to its shareholders.

Gazprom shares fell 27% on news of the canceled dividend, which reversed a board recommendation to pay a dividend of 52.53 roubles ($1 U.S.) a share.

Gazprom is the largest publicly listed natural gas company in the world and the largest company in Russia by revenue.

The decision by Gazprom to halt its dividend payment comes as the Group of Seven (G7) leading industrialized nations plan to cap the price of Russian oil and gas as a way to prevent Moscow from profiting from its invasion of Ukraine.

In a news release, Gazprom did not mention either the G7 cap on gas prices or its reduced gas flows to Europe, both of which threaten to cut its revenue and tax payments to the Russian government.

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