Dividend policy

The Company’s Regulations on the Dividend Policy approved by the Board of Directors seek to ensure the transparency of the mechanism for determining the amount of dividend and the dividend payment procedure.

Upon the Board’s recommendations, the General Meeting of Shareholders determines the dividend amount and record date, which, as per Russian laws, is to be set within 10–20 days of the General Meeting of Shareholders.

Dividends to a nominee holder are paid within 10 business days, while dividends to persons listed on the shareholder register are paid through the registrar, IRC – R.O.S.T., within 25 business days after the record date.

Any person who has not received the declared dividend because their address or banking details were not available to the Company or the registrar as required, or due to any other delays on the part of the creditor, may request payment of unpaid dividend within three years from the date of the resolution to pay the dividend. Beyond this period, any declared but unclaimed dividends are recovered as part of the undistributed profit of the Company, and there will be no obligation to pay them.

In 2022, the Company paid dividends subject to current regulatory restrictions:

  • Shareholders who are customers of foreign nominee holders and ADR holders: dividends were paid directly to security holders; the payment was made if information to identify the security holder and other information required to make the payment was available
  • Certain categories of foreign shareholders: dividends were paid to type “C” accounts opened with Russian credit institutions
Report on dividend paidEarlier dividend history is available at our website. Dividends are paid out to shareholders within three years from the respective dividend resolution date. Beyond this period, any unclaimed dividends are recovered as part of the undistributed profit of the Company, and there will be no obligation to pay them. The dividend payouts are shown as at 31 December 2022 according to IFRS statements.
Total dividends, USD mln Total dividends, RUB mln
Total for 2021 6,196 410,917
FYIncluding RUB 32.3  billion, or USD  0.5 billion, in dividend payments to ADR holders, transferred to the depository (NSD) and returned to the Company due to the restrictions imposed by the President’s Executive Order No. 95 dated 5 March 2022 and the Resolution of the Bank of Russia’s Board of Directors dated 10 June 2022. 3,146 178,075
9M 3,050 232,842
Total for 2020 3,532 259,893
FY 2,198 161,603
9M 1,334 98,290
Total for 2019 5,011 323,482
FY 1,264 88,166
9M 1,567 95,430
6M 2,180 139,886

Dividends in 2022

On 28 April 2023, the Company’s Board of Directors recommended that the Annual General Meeting of Shareholders not to pay dividends for the financial year 2022. The resolution will be passed at the Annual General Meeting of Shareholders on 6 June 2023.

Securities taxation

Income from securities is taxable pursuant to the applicable laws of the Russian Federation.

Under international double taxation treaties, non-Russian tax residents may claim a reduced rate of withholding tax or relief from tax in Russia. To claim these benefits, non-residents need to submit the following confirmations to their Russian tax agent paying the income:

  • A confirmation of permanent residence in a state with which the Russian Federation has a double taxation treaty (tax residency certificate);
  • A confirmation of the actual right to receive income;
  • A confirmation that they meet other conditions set forth in the applicable treaty.

If such confirmations are not provided by the date of income payment, the tax shall be withheld at the standard rates.

Taxation of income from securities
Shareholder From transactions (%) Interest (%) Dividend (%)
INDIVIDUALS
Residents 13/15Or 0%, if by the selling date the Company shares have been held for more than five years and the requirements for the share of real estate in the Company’s assets as outlined in Clause 2, Article 284.2 of the Russian Tax Code have been met. The terms and conditions of applying the 0%rate to international holding companies are set forth in Article 284.7 of the Russian Tax Code. Pursuant to Subclause 1, Clause 1, Article 219.1 of the Russian Tax Code, individuals who are Russian tax residents are eligible for investment tax deductions in the amount of the profits from sales of the Company shares, which have been owned by the taxpayer for over three years.Pursuant to Clause 1 of Article 224 of the Russian Tax Code, a tax rate of 15% applies to income over RUB 5 million for the reporting period.  13/15Pursuant to Clause 1 of Article 224 of the Russian Tax Code, a tax rate of 15% applies to income over RUB 5 million for the reporting period.  13/15Pursuant to Clause 1 of Article 224 of the Russian Tax Code, a tax rate of 15% applies to income over RUB 5 million for the reporting period. 
Non-residents 30Or 0%, if by the selling date the Company shares have been held for more than five years and the requirements for the share of real estate in the Company’s assets as outlined in Clause 2, Article 284.2 of the Russian Tax Code have been met. The terms and conditions of applying the 0%rate to international holding companies are set forth in Article 284.7 of the Russian Tax Code. Pursuant to Subclause 1, Clause 1, Article 219.1 of the Russian Tax Code, individuals who are Russian tax residents are eligible for investment tax deductions in the amount of the profits from sales of the Company shares, which have been owned by the taxpayer for over three years. 30 15
LEGAL ENTITIES
Residents 20Or 0%, if by the selling date the Company shares have been held for more than five years and the requirements for the share of real estate in the Company’s assets as outlined in Clause 2, Article 284.2 of the Russian Tax Code have been met. The terms and conditions of applying the 0%rate to international holding companies are set forth in Article 284.7 of the Russian Tax Code. Pursuant to Subclause 1, Clause 1, Article 219.1 of the Russian Tax Code, individuals who are Russian tax residents are eligible for investment tax deductions in the amount of the profits from sales of the Company shares, which have been owned by the taxpayer for over three years. 20 13Or 0%, if as of the date of the dividend resolution a Russian entity has been owning 50% (or more) of shares (15% or more if the owner is an international holding company) in Nornickel’s authorised capital for 365 days (or more).
Non-residents 20If the income is classified as income of a foreign entity from sources in Russia in accordance with Clause 1, Article 309 of the Russian Tax Code.  20 15

DIVIDEND TAX FORMULA FOR RUSSIAN RESIDENTSExcluding the dividend amount eligible for a zero tax rate pursuant to Subclauses 1–1.1, Clause 3, Article 284 of the Russian Tax Code. 

AT = P × TR × (D1 – D2), where

  • AT – amount of tax to be withheld
  • P – proportion of the dividend amount payable to one recipient to the total dividend amount to be distributed
  • TR – tax rate stipulated by the Russian Tax Code
  • D1 – dividend amount to be distributed among all recipients
  • D2 – dividend amountExcluding the dividend amount eligible for a zero tax rate pursuant to Subclauses 1–1.1, Clause 3, Article 284 of the Russian Tax Code.  received by Nornickel, provided that previously this amount was not included in the taxable income
SECURITIES TAXATION