Russia's Global Ports will scrap its dividend due to the economic turmoil that has crippled the freight market in Russia, the London-listed ports operator said. The company will focus on reducing debt and also seek authorisation from shareholders to increase the authorised share capital in order to be able to issue new shares if need be. The company fell to a net loss last year as a drop of more than 40 percent in the rouble led to foreign exchange losses on its dollar-denominated debt and squeezed Russia's imports. "The knock-on effect on imports has continued into 2015," Tiemen Meester, chairman of Global Ports, said in a statement. "The tough and volatile market environment looks set to continue for some time yet. The board considered it appropriate in view of the broader context to suspend dividend payments for the medium term," Meester said. The increase in the authorised share capital is aimed at enabling the company to "react quickly to potential business opportunities and to take advantage of market conditions to efficiently raise new capital", the firm said. Its shares were down 6.9 percent by 1429 GMT. The board will ask shareholders on April 29 to consider its proposals. It wants to be able to issue up to an additional 318.9 million ordinary shares and 849.5 million ordinary non-voting shares that could be offered for cash as well as other shares or assets, it said. It is proposed that existing shareholders do not have pre-emptive rights to buy the new shares, the company added. Global Ports made a net loss of $193 million in 2014 after a profit of $114 million in 2013 while revenues fell 4.5 percent, year-on-year, to $562 million due to lower throughput in both container and bulk cargo. The comparisons included the results of NCC Group, which Global Ports bought at the end of 2013, backdated to the beginning of 2013. The company increased prices and cut costs which helped increase adjusted earnings before interest, taxes, depreciation and amortisation by 4 percent to $376 million, it said. (Reuters)