Following the Russian energy company’s shareholders’ rejection of a record-breaking dividend, shares of Gazprom, which are traded on the Moscow Stock Exchange (GAZP), fell by more than 25% on Thursday.
At the company’s annual meeting, shareholders rejected the board’s recommendation to issue a dividend. Following the statement, the ruble gave up some of its gains against the dollar but is still trading near its highest level.
As the government increases social benefits, lawmakers are also debating levying a higher mineral extraction tax on businesses. Recent increases in energy costs around the world and responses to Western financial sanctions at the start of the crisis in Ukraine have helped to boost the currency.
This is terrible news for Gazprom shares, as the main reason to invest in the company was because of its enormous payouts. The choice is probably also influenced to some extent by the desire of the finance ministry to expand.
Gazprom made no mention of the lower gas supplies to Europe or the G7 recommendations to control gas prices, which both pose a danger to the company’s revenue and possibly its ability to pay taxes as a result.
The Group of Seven economic powers is looking to control the price of Russian oil and gas in an effort to stop Moscow from making money off of its actions in Ukraine, which have caused a substantial increase in energy prices. This is why Gazprom made its decision at this time.
With the U.S. government, Pfizer Inc. and partner BioNTech SE (BNTX) agreed to purchase 105 million doses of their COVID-19 vaccine for $3.2 billion.
Supplies of a modified Omicron-adapted vaccination are included in the agreement, subject to regulatory approval. To combat the Omicron variety that overtook the population last winter, pharmaceutical companies have been working on vaccinations.
Five years after leaving Formula One to compete in the electric Formula E series, the German clothing company Hugo Boss said on Thursday that it will be returning with the Aston Martin team.
Before joining Mercedes, the squad that has dominated over the past eight years, Hugo Boss spent many years with previous champions, McLaren.
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