Yesterday, during his meeting with the government, President Vladimir Putin reiterated that state owned enterprises should be paying out 25% of their net income in the form of dividends. The President expressed concern that discipline in this area was lacking among SOEs and criticised the practice of company-specific exclusions from the 25% rule.
The majority of listed SOEs have already started paying out at least 25% of RAS net income in the form of dividends, so Putin might have been referring to non-listed SOEs. Paying dividends out of IFRS net income, which could be an important trigger for Gazprom or Transneft, was not mentioned by the President.
Overall, the commitment to paying out 25% of net income in the form of dividends, reiterated at the highest level, is marginally positive.