Bashneft expects a directive from the Russian Government to make a decision on dividends

UFA, 30 April 2015. /Bashinform News Agency/. The Board of Directors of Bashneft failed to approve the recommendation for the company's dividends for 2014, "Interfax" reports. As the company informs on the results of the Board of Directors, "it is expected that the agenda of the annual meeting of shareholders and recommendations on the size of dividends for the company's work in 2014 will be approved by the Board of Directors after receiving the relevant directives of the Government of the Russian Federation". The Board of Directors decided to convene an annual general meeting in Ufa on June 30, 2015 and determined May 15, 2015 as the date when the list of persons entitled to attend the meeting would be announced.

As previously stated by the president of Bashneft Alexander Korsik, the company is able to direct 20 billion rubles on paying dividends for 2014. (About 46 percent of the profit according to IFRS). The authorized capital of Bashneft is divided into 180,3 million shares with par value of 1 ruble. Thus, about 110.9 rubles may be paid per share. According to him, the authorities are interested in obtaining significant funds in this and the coming years, "and I believe that the authorities would support the recommendation of the company management in respect of dividends". According to the law, Bashneft after the transition to the state ownership should pay at least 25 percent of net profit under IFRS.