Naftogaz frees up UAH 8.5 bln to buy gas after dividend payout ratio slashed to 30%

MOSCOW. July 4 (Interfax) - Naftogaz has freed up around UAH 8.5 billion to buy gas for the winter season after slashing the dividend payout ratio from 95% to 30%, said Yury Vitrenko, the Ukrainian national oil gas company's CEO.

"The government decided to reduce the dividend payout ratio from 95% to 30% [...]. It decided that the difference between the 95% and 30%, and that is around UAH 8.5 billion, will be used to import gas to get through the winter season on a stable footing," Ukrainian media quoted Vitrenko as saying on social media.

He said that in connection with the government's decision Naftogaz had paid an additional UAH 1.6 billion on top of the advance payment of UAH 2.3 billion for dividends from 2021 profit, which was UAH 12 billion.

Vitrenko said Naftogaz had paid UAH 47 billion into the state budget for January-May 2022 - one third of the treasury's entire tax receipts.

The government has issued a resolution, No. 742 of July 1, 2022, according to which Naftogaz will allocate 30% or UAH 3.916 billion of profit for dividends, 65% or UAH 8.483 billion to prepare for the winter season and 5% or UAH 652.575 million for reserve capital.

Vitrenko said earlier that Naftogaz would have to import around 6 bcm of gas to fill underground storage facilities to 19 bcm by the winter season, in keeping with government instructions, and would need $8 billion to buy that gas. He also said the company would need external financial aid or support from the state budget to do so.