Due to its debts, Gazprom will be unable to pay dividends to the Russian federal budget
21 May 12:48
Gazprom’s Board of Directors recommended to the annual shareholders’ meeting that no dividends be paid for the 2025 fiscal year.
In April, Gazprom published its financial statements for 2025 in accordance with international standards. Analysts were unanimous in their opinion that one should not expect the company to pay dividends for 2025, Interfax reports, according to "Komersant Ukrainian".
The agency cites experts who believe that, despite the presence of profits, the issue of dividends for Gazprom remains closed due to the priority of its debt policy.
“With total debt of 6.7 trillion rubles (about $94.6 billion at the current exchange rate) and a net debt/EBITDA ratio of 2.07x, the company will direct liquidity toward the scheduled repayment of obligations,” noted PSB, one of Russia’s largest banks.
Another financial institution calculated that Gazprom’s free cash flow, taking into account interest adjustments, is moving into negative territory.
At the financial firm BCS, analysts concluded that Gazprom “essentially has no money to pay dividends—this is indirectly confirmed by the company’s management’s complete silence on the matter.”
In recent years, Gazprom has not paid dividends to shareholders.
The annual shareholders’ meeting of PJSC Gazprom, to be held remotely, will take place on June 26. The agenda does not include the election of a new board of directors for Gazprom, as the current board was elected in 2025 for a three-year term (until June 2028).
The state controls over 50% of the gas monopoly: 38.37% directly, 10.97% through the state-owned company Rosneftegaz, and 0.89% through the state-owned company Rosgazifikatsiya.
Gazprom’s revenue in 2025 decreased by 9% compared to 2024, from 10.72 trillion rubles to 9.77 trillion rubles.
Watch us on YouTube: important topics – without censorship
The company’s EBITDA in 2025 decreased by 6.5% to 3.1 trillion rubles, while free cash flow increased eightfold to 294 billion rubles.
The Gazprom Group’s total debt at the end of 2025 remained at the 2024 level of 6.7 trillion rubles.
As reported, Gazprom shareholders approved a decision at the annual meeting not to pay dividends for 2024.
In 2024, Gazprom reported a net profit under international standards of 1.2 trillion rubles ($14.6 billion), compared to a net loss of 629.1 billion rubles in 2023.
Gazprom did not pay dividends for 2021. For the first half of 2022, shareholders received 51.03 rubles per share (a total of 1.208 trillion rubles); dividends were also not paid for the full year 2022 or for the entire year 2023.
“Gazprom” is a Russian gas production and distribution monopoly and the largest corporation in the Russian Federation. The state owns 50% of its capital. Its headquarters are located in St. Petersburg.
The company’s export activities are viewed by political analysts as part of the Russian Federation’s so-called energy diplomacy, which aims to expand the country’s political and economic influence in transit and consumer states (particularly in Europe).
The company is the sole exporter of gas from Russia—these functions are carried out by its subsidiary, Gazprom Export. The holding supplies gas to virtually all CIS countries, the Baltic states, and Western and Eastern Europe.
Following the halt of transit through Ukraine starting in 2025, the Turkish Stream remained the sole route for gas supplies to the EU. Consequently, Gazprom’s exports to Europe fell by more than 80% compared to 2021. In 2024, the company exported only 32 billion cubic meters of gas, a figure comparable to that of the second half of the 1970s.
Read us on Telegram: important topics – without censorship
