State Companies to Pay 25% of Net as Dividends, Dvorkovich Says

Russian state-owned companies should “in most cases” pay 25 percent of profit as dividends to the budget, Deputy Prime Minister Arkady Dvorkovich said in an interview in London today.

“The government has decided that we should have some rules regarding dividends,” Dvorkovich said. “We should have in most cases 25 percent of profit going as dividends to the federal budget. Any deviation from the rule can only be based on the decision of the prime minister.”

Russia’s Economic Development Ministry is seeking government backing for a plan to require state-controlled companies to pay 25 percent of their profit under International Financial Reporting Standards in dividends, the ministry’s press service said by e-mail on Aug. 31.

To contact the reporters on this story: Ksenia Galouchko in Moscow at kgalouchko1@bloomberg.net; Lyubov Pronina in London at lpronina@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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