Rosneft plans £3bn dividend pay-out as Russia scrambles for revenues

Rosneft has confirmed it will make its first ever nine-month dividend pay-out, as Russia scrambles to raise revenues to boost flagging economy.

Its board has recommended paying 20.39 roubles (RUB) per share for the first three quarters of trading this year.

Previously, the state-owned energy giant only dished out dividends either annually or twice a year on its six-month results.

This is expected to total £3.02bn (RUB 216bn), according to calculations from news agency Reuters, and be dolled out early next year.

Rosneft is one of the biggest oil-producing companies globally and is headed by Igor Sechin, a close ally of President Vladimir Putin, who has been subject to Western sanctions.

Dividends from nationalised companies have become an increasingly important source of revenue in Russia, with Western sanctions following the country’s invasion of Ukraine scaring off overseas investors and pressurising exports.

Russia is set to post a budget deficit of RUB 1.3tn this year, nearly one per cent of the country’s gross domestic product – despite initially projecting a surplus.

Next year, the finance ministry forecasts that this will double to RUB 3tn – around two per cent GDP.

Last month, Russia’s finance ministry dipped into its National Wealth Fund to cover social welfare and payouts promised to reservists fighting in Ukraine.