Federal Grid Company has adopted a new dividend policy

The new policy sets out the minimum rate of payable dividends and  a new methodology for the calculation of dividends, which is transparent and linked to the financial performance of the Company. The introduction of the new Dividend Policy is   part of the Company’s effort in improving its corporate governance practices and increasing the market value and investment appeal of the Company.
The new Dividend Policyprovides that dividends distributable to shareholders should account for not less than 10% of the Company’s net profit (calculated based on RAS financials) after deduction of the mandatory contribution to Reserve Fund. Profit from the revaluation of financial investments, profit from recovery of accruals of allowance for doubtful debtors, and proceeds from the sale of shares and other assets that were recorded for a certain accounting period are not taken into account in determining of the amount of dividends to be paid to shareholders.
It replaces a previous dividend policy, which was inherited from JSC “RAO UES of Russia”, the former parent company, and did not correspond to the new tariff regulation under RAB methodology as well as to the international best practice amongst regulated electricity transmission companies.    
Oleg Budargin,  Chairman of the Management Board of Federal Grid, commented:
“We are delighted to introduce our new Dividend Policy, which is designed to make dividend payments and rates more predictable and transparent for the benefit of the Company’s shareholders. We reviewed examples of the international best practice, in respect of dividend policy, including electricity transmission companies in other countries, and developed a well balanced policy, which aims to increase shareholder value while continuing to deliver on the ambitious targets for  grid modernisation set out by the Russian Government.“