Budget, Energy, Estonia, Financial Services, Legislation

Eesti Energia based its request to reduce the dividends with the fact that it helps the company to meet the requirements of rating agencies, keeping the financial ratios in required limits.

The government granted the company's request. Thus, the state budget 2014 will in addition to the 20 million euros also be deprived of 5.3 million euros of income tax on dividends.

Public Broadcasting reports that Eesti Energia's dividend reduction will impact the 2014 budgetary position, but it will remain better than planned in the budget.

"In drafting and adoption of the 2015 state budget, it has been taken into account that the dividend reduction in 2014 will increase Eesti Energia's dividend in 2015 by at least an equal amount," the Ministry of Finance told Public Broadcasting.