At a meeting of the Government Commission held on 9 August
, a new approach of the Ministry of Finance and the Bank of Russia to the issuance of permits for dividend payments (profit distributions) by residents to "unfriendly" shareholders (participants) was announced. On certain conditions, it will now be possible to obtain permits to pay dividends (distribute profit) without meeting the previously established requirements for their size, KPIs, etc.Default requirements
As a reminder, restrictions on dividend payments (profit distributions) to "unfriendly" shareholders (participants) were prescribed by Presidential Edicts No. 95 and No. 254. Profit distributions/dividend payments exceeding RUB 10 million per month can be made only to a type C account. Otherwise, payments can be made only if the Bank of Russia grants a permit for financial institutions or the Russian Ministry of Finance grants a permit for other entities.
Permits are issued under the following conditions:
- Dividends may not exceed 50% of net profit from the previous year;
- The results of a retrospective analysis of dividend payments for prior periods should be taken into account;
- Participants/shareholders (foreign creditors) must be willing to continue doing business in the Russian Federation;
- The opinion of federal executive authorities and the Bank of Russia should be taken into account in assessing the significance of the entity’s business and its impact on the development of the Russian Federation;
- KPIs established by federal executive authorities must be met;
- Dividends can be paid on a quarterly basis, provided that KPIs are met.