Gazprom's Dividend Dilemma: A Strain on Russia's Economy

In a move that could further strain Russia's financial landscape, Finance Minister Anton Siluanov announced that the 2025 budget does not anticipate a dividend payout from state-owned energy titan Gazprom.

Despite recovering from a significant financial loss in 2023 to deliver a net income of $14.8 billion for 2024, Gazprom is withholding dividends. This decision comes as the government faces declining oil and gas revenues, alongside escalating military expenses and inflation.

Historically, Gazprom's dividend payouts have been crucial; however, due to economic pressures, including reduced gas exports and high taxation, the company has repeatedly failed to meet expectations, even after a historic dividend in 2020.

(With inputs from agencies.)