Gazprom waiving dividends for 2021, priorities are investment program and increased tax payments

MOSCOW. June 30 (Interfax) - The shareholders of PJSC Gazprom have taken the decision not to pay dividends for 2021 during the annual general meeting held in absentia, the issuer said in a statement.

Famil Sadygov, Gazprom CFO and deputy chairman of the executive board, said that, "The shareholders have decided that in the current situation that it would be inadvisable to pay dividends for 2021. Gazprom's priorities at present are implementing the investment program, including gasification of Russia's regions and preparing for the upcoming winter. We of course must be ready to fulfill our obligations to pay higher taxes."

As previously reported, it has been proposed to pay 52.53 rubles per share totaling 1.244 trillion rubles for 2021.

Gazprom shares have dropped by more than 30% (-30.2% to 207.69 rubles) following the news.

On the Moscow Exchange, Gazprom shares fell to 265 rubles (-11%) by 10:48 a.m. Moscow time, then the fall continued, and by 10:54 Moscow time, the shares had fallen to 230 rubles (-22.7%), while the trading volume has exceeded 12.2 billion rubles.

Prior to the AGM's announcement of its decision, the company's shares had risen to 310.82 rubles (+4.4%).