After the shareholders rejected the payment of dividends for

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Gazprom shareholders have decided at the Annual General Meeting that the group should not pay dividends for the results of 2021, the Russian state-controlled company said in a press release on Thursday, Interfax reports, quoted by Agerpres.

In May, Gazprom reported that its board had recommended the payment of dividends of 52.53 rubles per share, a total of 1.244 trillion rubles for 2021.

“Shareholders have decided that, given the current situation, it is not advisable to pay dividends for 2021. Gazprom’s current priorities at present are the implementation of the investment program, including the gasification of the regions of the Russian Federation, and the preparation for next winter. Of course, we must be prepared to meet our obligation to pay higher taxes, “said Gazprom’s chief financial officer, Famil Sadygov.

Immediately after the publication of this information, Gazprom shares fell by more than 30% (minus 30.2% to 207.69 rubles per share).

In response, the Moscow Stock Exchange decided to suspend Gazprom’s shares from trading, given the 30% drop.

Gazprom, the world’s largest natural gas producer, supplies a third of Europe’s natural gas needs. The Russian group supplies Europe with natural gas through three main routes: the Ukrainian pipeline, the Yamal-Europe route, via Belarus and Poland, and the Nord Stream gas pipeline, which connects Russia and Germany, via the Baltic Sea.