Dividends

Contents

• Dividend Policy
• Dividend History
• FAQ

 

• The dividends represent the part of the Company’s net profits distributed among its shareholders in proportion to their shareholding in the corresponding category and type of shares.
• The Company has the right to declare dividends on outstanding shares. Decisions on payment of dividends, amounts and the form of payment on shares of each category (type) must be made as prescribed by the Federal Law “ Concerning Joint Stock Companies”. Dividend totals should not exceed the amount determined by the Board of Directors of the Company.
• Dividends are paid in monetary form unless determined otherwise by decision of General Meeting of Shareholders on dividend distribution.
• The dividend payment deadline is May 31st of the year following the year during which the decision on dividend distribution was taken.
• When declaring dividend distributions, the Company must abide by restrictions prescribed by federal laws.
• All shareholders listed in the register of shareholders on the record date and eligible to participate in the meeting of shareholders in which the decision to distribute a dividend is made are entitled to dividend disbursement. The date of registration of ADR-holders is established separately by a depository bank, currently the Bank of New York.

 

 

Dividends are a portion of the company's net profit distributed to shareholders proportionally, based on the number of shares they own.

 

 

Decisions on the payment, size and form of payment of dividends are made at a general shareholders’ meeting in accordance with procedures laid out by the Russian federal law " Concerning Joint Stock Companies". Dividend totals should not exceed an amount recommended by the Board of Directors of the Company.

 

 

Shareholders listed in the corporate register on the eligibility deadline for participating in the shareholder meeting (ex-dividend date) at which dividends are approved, have the right to receive those dividends.

 

The ex-dividend date for holders of ADRs with the right to receive declared dividends is set separately by the depository bank (Bank of New York).

 

How often are dividends paid? 

 

Dividends can by paid quarterly, six-monthly, or annually. The total amount of dividends is determined at the annual general shareholder meeting.

 

What is the Company’s long-term dividend policy?

 

The Company plans to pay out as dividends a minimum of 15% of net profits received at the end of the reporting period.

 

How can I receive my dividend?

 

Specialised registrar company CJSC “Specialised registrar - The registrar for gas industry” (CJSC "SR-DRAGa", 71/32 Novocheryomushkinskaya Str., Moscow, 117420) acts as the Company’s agent for payment of dividends. Dividends can be received in one of three ways: post office wire, bank transfer, or in cash from the registrar. The procedure chosen for receiving payment for each shareholder is indicated in the individual registration card maintained by the registrar. The method of dividend payment can be changed by contacting the registrar.

 

I was a shareholder as of the ex-dividend date. Why haven't I received my dividend yet?

 

In some cases, the problem could be an incomplete registration card (without bank transfer information or tax identification number). If your shares are held by a nominee, it is possible that the delay is because the nominee has not properly notified the registrar about you notification late or incomplete). For clarification, you will need to contact the registrar: 71/32 Novocheryomushkinskaya Str., Moscow 117420; opening hours for shareholders: 9 a.m. – 1.00 p.m. on business days. Consultation and pass ordering for shareholders by phone: (495) 719-39-30; How to find: Novye Cheremushki Metro Station, first car from city centre, trolleybus 60, bus-stop " Novocheryomushkinskaya Str." Phone at +7 (495) 771-73-34.

 

I received my dividend by post office transfer and money was withheld for transfer fees. How can I avoid this expense?

 

The postal system subtracts a fee from any money transfer. To avoid this cost, you can change your individual registration card and receive payment in cash at the registrar’s office, or by transfer to your personal bank account.

 

In order to change your card, please contact the registrar.

 

 

In accordance with the Tax Code of the Russian Federation, the issuer (company) should withhold individual income taxes from dividends. Therefore, you receive payment with taxes already deducted:
- legal entities resident in the Russian Federation  - 9%
- non-resident legal entities - 15% (*)
- individual residents of the Russian Federation  - 9%
- non-resident individuals  - 15% (30% until 01.01.2008)

 

When filing a tax return, the amount of tax withheld from dividends must be indicated. How may I do that?