The Central Bank of the Russian Federation called on companies to explain their refusal to pay dividends

Public companies that decide to deviate from their stated dividend policy should disclose to investors the reasons for such a step so as not to send bad signals to the market, said First Deputy Chairman of the Bank of Russia Vladimir Chistyukhin. His words are quoted by Interfax.

Chistyukhin, in particular, pointed out that some companies, for one reason or another, “suddenly decided that if they are not doing very well and do not pay dividends, then there is no need to explain why they do not do this,” although investors perceive such situations “very hard.” “Just, well, explain openly that this and that happened, such and such tasks have been set, resources are needed for other things, we will not pay dividends this year,” he called.

“Yes, it won’t be very pleasant, but it will be a fair game,” summed up the deputy chairman of the regulator, noting that investors will like such communication much more.