Dividends

Dividend Policy

• Dividend payment is subject to Russian federal law.
• Dividends are paid from Uralkali’s net profit (profit after tax), which is determined based on its accounting statements.
• In accordance with the Federal Law on Joint Stock Companies, the Company charter and the Regulation on Dividend Policy, the Company is entitled to decide on the full-year dividend, as well as quarterly dividends at three, six and nine months.
• Decisions on the payment and size of dividends are made by the General Meeting of the Shareholders. However, the dividend amount may not exceed the amount recommended by the Company’s Board of Directors. At least twice per calendar year the Board of Directors develops recommendations to the general meeting of shareholders on the procedure of profit distribution in the form of dividends, the amount dividends on the shares of the Company and the procedure of their payment.
• Uralkali’s dividend policy stipulates that the amount of funds utilized for dividend payment must not be less than fifty (50) percent of net profit, determined on the basis of the Company’s financial statements for the corresponding period. At the same time, Uralkali draws shareholders’ attention to the fact that setting dividend payments is a right, and not an obligation, of the Company.

Uralkali discloses all relevant information on dividends in the quarterly issuer reports which are available on the Company’s website, Financial Performance.

Taxation

Dividend payments in Russia are taxed at 9% for domestic shareholders, both individuals and corporate entities, and 15% for overseas investors. In case when a double taxation treaty is applied, the tax payable is determined by reference to this agreement. Potential and existing investors in Uralkali shares, including GDRs, are advised to consult their investment advisors on tax implications.