The Ministry of Economic Development suggests obligating state-owned companies to direct 50% of net profit for paying dividends for 2018, according to the draft resolution of the Cabinet of Ministers.
The limit, set for distribution of profit for 2017, constitutes 75%, while a year ago, a 50% limit was effective.
If by July 1, 2019, the state companies do not pay profit to the state budget, the contracts with their heads will be terminated, according to the draft document.
There may be an exception for Ukrhydroenergo, Oshchadbank and Ukrzalizanytsia: as in this year, they will have to pay dividends to the state budget, amounting to 30% of profit for 2018 – minimum acceptable amount according to the law on management of state-owned companies.
The need in 30% limit of dividends for Ukrhydroenergo is caused by the need in containing growth of electricity rates for end users, Oshadbank – his contracts with foreign financial institutions on attracting USD 1.5 bln, and Ukrzaliznytsia – need in capital investments.
12 state-owned companies suggested determining the share of profit directed for paying dividends in 2019, in the amount not exceeding 30%, 1 company – 35%, 5 companies – 50%, 3 companies – 75%, 1 company – 90%, 1 company – less than determined by law, and 2 companies did not determined the scope of basic limit and other 5 companies did not presented their proposal.
