Management Committee endorses Gazprom’s revised Dividend Policy

  • It is proposed that dividends be calculated based on adjusted net profit under IFRS.
  • Target level of payouts – at least 50 per cent – is to be reached in three years.
  • New version of Dividend Policy will be submitted for approval by Gazprom Board of Directors.

The Management Committee endorsed the draft new revision of Gazprom’s Dividend Policy.

The document, which was developed as part of the effort to streamline the financial strategy of the Company, takes into account best practices in the area of corporate governance. The new Dividend Policy aims to make the dividend calculation mechanism as transparent as possible and to create the conditions for increasing shareholder income while maintaining the Company’s financial sustainability at a high level.

It is proposed that dividends be calculated on the basis of adjusted profit attributable to the shareholders of Gazprom in accordance with International Financial Reporting Standards (net profit under IFRS). Currently, dividend calculation under IFRS is carried out based on the net profit of the head company in line with the Russian Accounting Standards.

According to the draft new version of the Dividend Policy, net profit will be adjusted with regard to a number of non-monetary items (income and expenditure items unrelated to cash flows in the reporting period). The draft document includes a full list of adjustments.

The target level of dividend payouts is at least 50 per cent of the adjusted net profit under IFRS. It is planned to reach that level gradually: no less than 30 per cent based on the results for 2019; no less than 40 per cent for 2020; and no less than 50 per cent for 2021 and subsequent years.

If the net debt (adjusted)/EBITDA indicator for the full year exceeds 2.5, the Board of Directors may resolve to reduce the amount of dividends recommended for approval by the General Shareholders Meeting. If necessary, this will allow the Company to maintain its debt burden at a comfortable level.

“The new dividend policy of Gazprom is an important step towards the shareholders and investors. I am convinced that the Company’s shares, which have considerable potential for growth, will become an even more attractive asset for financial investors,” said Alexey Miller, Chairman of the Company’s Management Committee.

The issue regarding the approval of the draft new revision of Gazprom’s Dividend Policy will be submitted for consideration by the Board of Directors.

Gazprom is going to enact its dividend policy at its subsidiaries and affiliates as well.

Staff changes

Andrey Fick has been appointed Head of Department 644.

Andrey Fick was born in the Krasnodar Territory in 1969. He graduated from Krasnodar Polytechnic Institute in 1993, majoring in Mechanical Engineering Technologies. He obtained his second university degree from Kuban State Technological University in 2000, majoring in Cryo-Engineering. He has an MBA degree and a PhD degree in Engineering.

He has been a member of Gazprom’s team for more than 23 years.

1999–2000: Compressor operator at a gas compressor service, supervisor of the process control system at the Kushchevskaya underground gas storage station, Gazprom Transgaz Krasnodar.

2000–2001: Engineer at the Construction Division for the Beregovaya compressor station (CS), Administration of the Russia – Turkey gas pipeline under construction, Gazprom Transgaz Krasnodar.

2001–2002: Deputy Director, Head of the Construction Division for the Beregovaya CS and the Blue Stream gas pipeline’s offshore section, Administration of the Russia – Turkey gas pipeline under construction, Gazprom Transgaz Krasnodar.

2002–2007: Head of the Beregovoye Gas Pipeline Operation Center, Gazprom Transgaz Krasnodar.

2007–2013: Deputy Director General for Repair and Capital Construction, Gazprom Transgaz Krasnodar.

2013–2015: Technical Director, South Stream Transport B.V.

2015–2016: Director General, Gazprom Russkaya.

2016–2019: Managing Director, Gazprom EP International B.V.

Alexander Mazurov, former Head of Department 644, will continue his work in a different position at the Gazprom Group.

Sergey Tumanov, former Managing Director in control of operating activities at Gazprom EP International B.V., has been put in charge of the company by resolution of its General Shareholders Meeting.

Alexey Miller and Germany’s Federal Government Commissioner for Gas Transit across Ukraine hold working meeting

A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Georg Graf Waldersee, Commissioner of the Federal Government of the Federal Republic of Germany for Gas Transit across Ukraine, took place today in St. Petersburg.

Alexey Miller briefed Georg Graf Waldersee at length about the progress of the Russian-Ukrainian negotiations on cooperation in the gas sector from 2020 onward.

It was noted that Ukraine continues to integrate the EU’s Third Energy Package into its national legislation. This work, which is not yet finished, involves the creation of an independent certified gas transmission operator.

Alexey Miller stressed that Gazprom is expecting Ukraine to adopt a constructive position on a host of issues with regard to interaction in the gas sector, including economically sound terms of transiting Russian gas across Ukraine from 2020 onward.


International Business Congress holds Presiding Committee Meeting

The International Business Congress (IBC) held a Presiding Committee Meeting today in St. Petersburg.

The Meeting participants took stock of the IBC performance in the year 2019, heard the progress reports by the heads of the working committees, and also discussed the direction for further development of the IBC.

The participants approved the central theme of the next IBC General Meeting: “Challenges and Opportunities at the Growing Energy Markets in Asia.”

As a result of voting by the Meeting participants, a number of amendments were made to the IBC Articles of Association. Specifically, a new position – Chairman – was created at the Board of Executive Directors. Alexander Medvedev, Member of the Board of Directors of Nord Stream 2 AG, Adviser to Director General of Gazprom Export, was elected to this position. In addition, the participants introduced changes to the composition of the Presiding Committee and approved the IBC budget for 2020.


The International Business Congress (IBC) is an international non-governmental and non-profit organization. The IBC consists of 124 members from 24 countries, among them Gazprom, OMV AG, Deutsche Bank, N.V. Nederlandse Gasunie, J.P. Morgan Bank International, KPMG, Mitsubishi, Mizuho Bank, Siemens, Shell, Equinor, Schneider Electric, Sumitomo Mitsui Banking Corporation, Total, Uniper, Wintershall Dea, Sakhalin Energy, Srbijagas, and others.

The IBC’s supreme body is the General Meeting. The 51-member Presiding Committee exercises general management. The eight-member Board of Executive Directors is responsible for operational issues.

The Congress deals with the practical aspects of economic cooperation and brings forward proposals for debottlenecking and building a favorable environment for safe and efficient entrepreneurial activities. The IBC operates through eight Working Committees: Energy; Industry, Innovations and Prospective Development; Law, Banking and Finance; Information and Communications; Ecology and Healthcare; Modern Technologies and Prospective Oil and Gas Industry Projects; Human Resources; and Business Security.


Chairman of Gazprom Management Committee and Mongolia’s Prime Minister discuss cooperation prospects

A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Ukhnaagiin Khurelsukh, Prime Minister of Mongolia, took place today in Moscow.

The parties discussed the prospects of energy cooperation. It was also noted that in November 2019 Gazprom Export carried out the first small-scale delivery of Russian liquefied natural gas to Mongolia.


On November 4, 2019, Gazprom Export delivered the first batch of Russian LNG to Mongolia to be used as a vehicle fuel in municipal transport in the country’s capital city, Ulan-Bator. The batch weighed 36 tons.


Gazprom commences pipeline supplies of Russian gas to China

  • Power of Siberia gas pipeline has come onstream.
  • Gas production center has been set up in Yakutia.
  • Conditions for further gas grid expansion have been created in eastern Russia.

A ceremonial event marking the start of first-ever pipeline supplies of Russian gas to China via the eastern route – the Power of Siberia gas trunkline – took place today.

Taking part in the event via conference call were Vladimir Putin, President of the Russian Federation, Xi Jinping, President of the People’s Republic of China, Alexey Miller, Chairman of the Gazprom Management Committee, and Wang Yilin, Chairman of the Board of Directors of CNPC.

The scheme of gas supplies via the eastern route is the most ambitious investment project in the global gas industry. Within this framework, Gazprom has built a section of the Power of Siberia gas pipeline stretching for some 2,200 kilometers from Yakutia to the Chinese border near Blagoveshchensk. Also completed are the border-adjacent Atamanskaya compressor station and a cross-border section with a two-string submerged crossing under the Amur River.

According to the Sales and Purchase Agreement between Gazprom and CNPC, gas deliveries will be carried out in the course of 30 years. There is a robust resource base in place. Currently, Power of Siberia receives gas from Chayandinskoye, the largest field in Yakutia (1.2 trillion cubic meters of gas reserves). On the basis of this field, a new gas production center has been created in the region from the ground up. The center has already been provided with key facilities, such as comprehensive gas treatment and pre-treatment units, a booster compressor station, a utility system, and about 1,000 kilometers of roads, including 25 bridges. The field’s annual design output is 25 billion cubic meters of gas. This figure is expected to be reached in 2024.

In late 2022, Power of Siberia will start to receive gas from one more location – Kovyktinskoye (2.7 trillion cubic meters of gas reserves), the most prolific field in eastern Russia. At the moment, the field serves as the basis for creating the Irkutsk gas production center, with pre-development operations underway. In the future, an approximately 800-kilometer stretch of Power of Siberia will be constructed between Kovyktinskoye and Chayandinskoye.

Owing to the unique experience and expertise of Gazprom’s specialists, the project is implemented with utmost efficiency in the given extreme climatic conditions such as, for example, the minimum air temperatures in Yakutia which can be as low as −62 degrees Celsius. Power of Siberia passes through wetlands, mountainous terrains, seismically active zones, and areas of permafrost and rocky ground. In the project, the Company is applying cutting-edge technologies along with domestic hi-tech equipment meeting the best world standards. For instance, the Power of Siberia gas pipeline is built using solely pipes of Russian manufacture with anti-friction coating inside, as this technology helps reduce gas transmission costs. On the outside, the pipes are insulated with innovative Russian nanocomposite materials providing anticorrosion protection which guarantees a long service life for the gas pipeline. For crossing active tectonic faults, pipes of enhanced deformation capacity are used, with special technical solutions applied when laying them. Russian factories mastered the production of these pipes especially for Power of Siberia.

The project is carried out with a particular focus on maintaining a high level of process and environmental safety. Based on detailed surveys, and as early as at the design stage, the technical solutions were envisaged to be as environmentally-friendly as possible. These solutions include minimally manned technologies, comprehensive process automation, use of renewable energy sources, and provision of continuous environmental monitoring.

The Power of Siberia gas pipeline and the new gas production centers in eastern Russia provide additional opportunities for the acceleration of socio-economic development in eastern regions, primarily through gas grid expansion: the route of the pipeline was designed with a view to bringing gas to as many inhabited localities as possible. About 1,900 permanent jobs have been created at the facilities built by Gazprom. Stable tax payments will become a major source of revenues for the regional budgets and social programs.

“Today, we are witnessing a historic event for Russia and China. The eastern route – Power of Siberia – is a global, strategically significant and mutually beneficial project. A new scope of energy cooperation between the two countries with a prospect for further development. Clean energy today and tomorrow, for decades to come,” said Alexey Miller.

Gazprom completes construction of gas pipeline branch to town of Tsiolkovsky

  • Power of Siberia is facilitating gas grid expansion in Amur Region.
  • About 3,000 permanent jobs will be created at Amur GPP.

A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Vasily Orlov, Governor of the Amur Region, took place today in Blagoveshchensk.

The parties discussed issues related to enhancing their strategic cooperation in light of the start-up of the Power of Siberia gas pipeline. It was noted that the project is creating additional opportunities for the acceleration of socio-economic development in the Amur Region, primarily through gas grid expansion.

This year, the Company completed the construction of a pipeline branch with a gas distribution station (GDS) to the town of Tsiolkovsky. Both facilities are being prepared for commissioning. Efforts are underway to build an inter-settlement gas pipeline stretching from the GDS in order to supply gas to a boiler house in Tsiolkovsky and to the facilities of the Vostochny Cosmodrome. Design work is finished for a pipeline branch, a GDS and an inter-settlement gas pipeline towards the town of Svobodny. The Company will start building these facilities as soon as it receives positive conclusions as a result of state expert review.

Gazprom developed a draft Program for gas supply and gas infrastructure expansion in the region until 2026. The document envisages bringing gas to 38,000 households and 33 boiler houses. The draft Program is pending approval by the Government of the Amur Region.

The parties paid particular attention to the development of the employment market. Specifically, the construction project for the Amur Gas Processing Plant, one of the world’s largest gas processing facilities, which is currently being implemented by Gazprom, will help create about 3,000 permanent jobs. The first start-up complex of the facility is expected to come onstream in 2021.


Gazprom and the Government of the Amur Region are bound by the Cooperation Agreement.

As part of the Gazprom for Children program, 15 regional school stadiums and multi-purpose sports grounds were built in 2017 and 2018 in such cities and towns as Blagoveshchensk, Shimanovsk, Tynda and Zeya, as well as in villages in the Belogorsky, Blagoveshchensky, Bureysky, Magdagachinsky, Mazanovsky, Oktyabrsky, Tyndinsky and Zavitinsky districts. The Company is making preparations for the construction of five sports and health centers: two in the city of Blagoveshchensk and one each in the town of Tynda, the settlement of Magdagachi, Magdagachinsky District, and the village of Tambovka, Tambovsky District.


Results of 9th Energy of Victories national sports journalism festival contest announced

The final round of the 9th Energy of Victories national sports journalism festival contest, organized by the Russian Olympic Committee and the Federation of Sports Journalists of Russia with the backing of Gazprom, took place today in Moscow.

The winners of the 9th Energy of Victories national sports journalism festival contest are as follows:

Best Article (federal media):

1st place – Yury Golyshak, Sport-Express newspaper, Moscow;

2nd place – Vladimir Ivanov, Sport-Express newspaper, Moscow;

3rd place – Natalia Bykanova, Fizkultura i Sport (Physical Culture and Sports) magazine, Moscow.

Best Article (regional media):

1st place – Yury Seyidov, Gornyatskaya Pravda (Miner Gazette) newspaper, Korkino;

2nd place – Alexey Kurochkin, Argumenty i Fakty (Arguments and Facts) newspaper, Nizhny Novgorod;

3rd place – Veronika Peschinskaya, Baikal 24 Sport news agency, Irkutsk.

Best Article (Russian-language media based abroad):

1st place – Viktor Khokhlyuk, Interfutbol newspaper, Kasansay (Uzbekistan);

2nd place – Rasim Movsumov, Sportsman magazine, Baku (Azerbaijan).

Best Video Report/Coverage/Film (federal media):

1st place – Mikhail Korolyov, CSKA TV television channel, Moscow;

2nd place – Elmira Mirzoeva, Match Strana television channel, Moscow;

3rd place – Mikhail Rossoshansky, Match TV television channel, Moscow.

Best Video Report/Coverage/Film (regional media):

1st place – Darya Cheremushkina, Krasnodar-Online television channel, Krasnodar;

2nd place – Svetlana Antimonova, OTS-TV television channel, Novosibirsk;

3rd place – Konstantin Velichko, Chelny-TV television and radio broadcasting company, Naberezhnye Chelny.

Best Video Report/Coverage/Film (Russian-language media based abroad):

1st place – Yury Mikhalevich, TUT.BY website, Minsk (Belarus).

Best Photo Report/Coverage (federal media):

1st place – Alexey Filippov, Rossiya Segodnya international news agency, Moscow;

2nd place – Alexander Fyodorov, Sport-Express newspaper, Moscow;

3rd place – Grigory Sysoev, Rossiya Segodnya international news agency, Moscow.

Best Photo Report/Coverage (regional media):

1st place – Maxim Fyodorov, Press Center of Children of Asia International Games, Yuzhno-Sakhalinsk;

2nd place – Vladimir Ognev, Tyumenskaya Arena (Tyumen Arena) sports news agency, Tyumen;

3rd place – Kirill Kukhmar, ITAR-TASS, Novosibirsk.

Best Photo Report/Coverage (Russian-language media based abroad):

1st place – not awarded;

2nd place – Kirill Kudryavtsev, Moscow office of Agence France-Presse, and Evgenia Novozhenina, Thomson Reuters international news agency;

3rd place – Stanislav Filippov, news agency, Nur-Sultan (Kazakhstan).

Best Radio Report (federal and regional media):

1st place – Alexander Netsenko, Nikolay Saprin, Radio Rossii/Radio Mayak, Moscow, and Victoria Kolosova, Radio Rossii/Radio Mayak, Moscow;

2nd place – Andrey Kudryashov, Radio Rossii, Moscow;

3rd place – Maxim Bobro, Lipetsk FM radio channel, Lipetsk, and Olesya Timonina, Yuzny Ural – Radio, Chelyabinsk.

Future of Sports Journalism:

1st place – Evelina Valova, Udmurtia television channel/First City School Television, Izhevsk;

2nd place – Diana Nikitina, Alexandra Piskun, Khabarovsk children’s television studio/Khabarovsk television channel, Khabarovsk;

3rd place – Olga Eremeeva, Elena Makhnina, Color Television student press center, St. Petersburg.

The Patriarch Special Prize was awarded to Gennady Orlov, Soviet and Russian sports journalist, famous sportscaster, former footballer and USSR Master of Sports.

Evgeny Dzichkovsky, famous sports journalist and writer, received the Special Prize for Contribution to Sports Journalism.

Vladimir Gomelsky, famous basketball player, coach, Russian newscaster, journalist and writer, won the Special Prize for Achievements from the Russian Olympic Committee.

The festival’s jury was made up of renowned Russian sports journalists: Viktor Gusev, sportscaster at Channel One Russia, member of the Russian Academy of Television, TEFI winner; Maxim Demkov, TV and radio presenter; Nikolai Dolgopolov, President of the Federation of Sports Journalists of Russia; Andrey Golovanov, photojournalist at Match TV television channel; Igor Rabiner, journalist, staff writer at Sport-Express, two-time prize winner of the Energy of Victories festival contest; and Maria Markova, Managing Editor for special projects of the Sport-Express newspaper and website.


The 1st Energy of Victories national sports journalism festival contest was organized by Gazprom in 2011 within the Gazprom 2014 project. Since then, over 2,000 journalists from all Russian regions and 20 foreign countries have participated in the contest.

The 9th Energy of Victories festival contest was organized by the Russian Olympic Committee (ROC) and the Federation of Sports Journalists of Russia, with Gazprom as a general partner. This contest involved 305 journalists from 58 Russian regions and 8 countries within and beyond the former Soviet Union.

Close collaboration between Gazprom and the ROC began with the signing of a long-term cooperation program in 2001. Gazprom provided the ROC with financial support in training Russian athletes for the Olympic Games in Salt Lake City (2002), Athens (2004), London (2012), and Sochi (2014). Gazprom also built unique industrial facilities and sports venues in the lead-up to the Winter Olympics in Sochi.

On October 23, 2014, Gazprom and the ROC signed the Memorandum of Cooperation. Gazprom was named as a general sponsor of the Russian Olympic team.