Short shrift for Gazprom’s portfolio investors

The world’s largest gas producer is once more likely to ignore calls to increase dividends

Investors hoping for a dividend windfall from Gazprom are likely to be shortchanged again, as Russia's gas export monopoly prepares for a spending splurge to fund new pipelines to China, Turkey and Germany. Analysts say Gazprom is hell-bent on spending money on "value-destructive" investment projects rather than complying with a Kremlin decree to raise dividends to 50% of earnings, as defined under International Financial Reporting Standards (IFRS). In the past two years, Gazprom has managed to wiggle out of its obligations by securing a controversial waiver. At this stage in the financial year, it's looking as if negative free cash flow leaves limited room for dividend upside and investors