Russia is set to receive $10 billion as dividend from the state’s gas giant Gazprom after the energy firm reported a record net profit for the year’s first half.
Gazprom (GAZP.MM) made a record 2.5 trillion rubles ($41.75 billion) in net profit in the first half of 2022, up from 968 billion rubles in the first half of 2021’
The company’s board recommended paying interim dividends after skipping its annual payout for the first time since 1998.
Since Russia owns 50.2% of Gazprom, it stands to receive around half of an enormous investor payout worth $20 billion, or 1.21 trillion rubles, that the board proposed at 51.03 rubles per ordinary share, Business Insider reported.
The dividend is subject to shareholders’ approval at an extraordinary general meeting on September 30.
Gazprom shares climbed 24.95% on Wednesday after its earnings announcement but fell 2.27% on Thursday
The gas giants record profit comes as the US and Europe enact sweeping sanctions on the Russian economy, which the Biden administration said would deprive Russian leader Vladimir Putin of the funds he needs to continue the Ukraine invasion.
Russian natural gas accounted for around 40% of Europe’s gas power needs before the war in Ukraine.
Europe is grappling with energy crisis although it has largely avoided banning gas imports from Russia.
A key part Russian energy flow to Europe passes through Nord Stream 1 pipeline, which Putin has been accused of trying to “weaponize” by repeatedly cutting off the gas supply.
However, Gazprom has said that flow interruptions were due to technical difficulties and maintenance shutdowns.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.