This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine.

MOSCOW, June 30 Reuters Russian gas giant Gazprom has decided not to pay dividends on last year39;s results, the first time it will not pay out since 1998, sending its shares plunging 27.

The shareholders decided that in the current situation it is not advisable to pay dividends based on the 2021 results, Deputy CEO Famil Sadygov said.

He added that Gazprom would rather focus on Russian regional gasification, preparation for the heating season and paying increased taxes.

Gazprom shares plunged by more than 27 on the decision, which reversed a board recommendation to pay a dividend of 52.53 roubles per share in what would have been its biggest payout.

Gazprom plans to spend 526 billion roubles 10 billion by 2025 to increase Russia39;s gasification from its current level of 72.

Lawmakers are also discussing imposing a higher mineral extraction tax on the company as the government boosts social payments.

This is a disaster for Gazprom shares, as the company39;s only investment appeal was high dividends. The decision is also likely partly linked to the finance ministry39;s willingness to increase… budget revenue, Tinkoff Investments analysts said.

Gazprom39;s decision comes as the Group of Seven economic powers looks to cap the price of Russian oil and gas as a way to prevent Moscow profiting from its actions in Ukraine, which have led to a sharp rise…