All shareholders of Russian majority state-owned Gazprom will not receive dividends on last year’s financial results.
This marks the first time the energy giant decided not to pay dividends since 1998.
Gazprom’s Deputy Chief Executive Officer Famil Sadygov said: “The shareholders decided that in the current situation it is not advisable to pay dividends based on the 2021 results.”
The company plans to invest 526 billion roubles (£8bn) in Russia’s regional gasification and pay increased taxes.
It has been reported that Gazprom’s shares tumbled more than 20% on the decision.
Walid Koudmani, Chief Market Analyst at financial brokerage XTM, said: “While the company made record earnings last year as a result of climbing energy prices, it was hit hard by the sanctions and geopolitical tensions caused by the Russia-Ukraine conflict.
“Despite the possibility of this being a calculated risk which caused share prices to drop noticeably, it could lead to the necessary measures being taken in the mid to long term to maintain effective supply, particularly in Russia.”