Two Dozen Russian Companies Refused To Pay Dividends
- 26.05.2025, 13:51
Because of the economy's problems.
The largest Russian companies are massively refusing to pay dividends to their shareholders, citing the unstable economic situation. In the spring of 2025, the boards of directors of at least two dozen publicly traded organizations recommended not to transfer profits to shareholders based on 2024 results, Vedomosti reports.
According to Rosstat, Russian companies earned a total of 30.4 trillion rubles in 2024. This is 6.9% less than in 2023, and taking into account price growth - by about 15% (inflation amounted to 9.4%). The aggregate result of profitable companies changed little over the year: Rb 37.6 trillion, or minus 0.8%. But the losses jumped by 37.7%, to 7.2 trillion rubles.
The leaders of the extractive industries and energy sector - Gazprom, Nornickel, NLMK, Severstal (there will be no payments for the IV quarter of 2024 and I quarter of 2025), En+ Group, Rusal, Rosseti - are among the companies that refused to pay dividends. Many companies have nothing to pay their shareholders - Gazprom lost its export revenues and its cash flow became negative, and NLMK turned out to be in losses this year.
Problems have arisen in almost all industries - retail, real estate, agriculture, logistics, engineering and medicine. Magnit, Lenta, M.Video, United Carriage Company, CIAN, PIK, Samolet, Promomed, Rusagro, Artgen, Sovcomflot, Globaltruck, Nizhnekamskshina and Yakovlev Aviation Corporation left shareholders without dividends. And the long list doesn't end there. Analysts estimate that Rusgidro, Alrosa, Aeroflot and retailer All Instruments are also likely to refuse payments.
Analyst at Freedom Finance Global Vladimir Chernov singles out a drop in export earnings and sanctions as reasons for the decline in earnings at Gazprom, NLMK, Nornickel, Rusagro and Sovkomflot. According to Igor Danilenko, investment director of Renaissance Capital, the mass refusal of dividends is not only due to the deterioration of market conditions, but also due to the high cost of borrowed funds. With rates over 21%, the decision to preserve liquidity and direct profits to operating purposes looks justified.
In addition to expensive loans, exporting companies are under pressure from the strong ruble, according to Yaroslav Kabakov, strategy director at Finam: this reduces revenue for metallurgists, oil producers, fertilizer and agricultural producers.