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Bloomberg
Rosneft OJSC, Russia’s largest oil producer, plans to increase its dividend as the government seeks more funds from state corporations to bolster public finances.
The company board has recommended increasing the payout to shareholders to 35 percent of its 2015 profit, or 11.75 rubles a share. The dividend would amount to 124.5 billion rubles ($1.87 billion) and represents a departure from a policy of paying 25 percent of net income, which resulted in a 8.21 ruble dividend last year.
Russia’s push for more funds from state companies comes as a collapse in crude prices has sapped petrodollars and the nation faces a budget deficit.
The government’s approaches to battle lower revenues have also included cutting spending, potentially selling assets and dipping into reserve funds.
Rosneft will hold its annual general shareholders meeting on June 15 in St. Petersburg. The record date for attendance closes at the end of the working day on May 3.
The Russian government is the largest shareholder in Rosneft with a 69.5 percent stake through its fully owned Rosneftgaz OJSC, according to data from filings compiled by Bloomberg.