Gazprom shares hit a 17-year low due to suspension of negotiations with China
Kyiv • UNN
Gazprom shares on the Moscow Exchange fell to 90.21 rubles, the lowest level since 2008. The reason was the suspension of negotiations with China on the "Power of Siberia-2" gas pipeline.
Shares of Gazprom on the Moscow Exchange on Wednesday hit their lowest levels in 17 years amid news that China has de facto suspended negotiations on the Power of Siberia-2 gas pipeline, which the Kremlin hoped would replace lost European gas markets. This is reported by The Moscow Times, informs UNN.
Details
It is noted that during trading, Gazprom's securities fell to 90.21 rubles — the lowest since November 20, 2008, losing nearly 3% at one point.
Since the beginning of July, Gazprom has lost 11% of its value, since the beginning of the year — 27%, and compared to the pre-war records of autumn 2021, it has lost almost 80% of its capitalization. Currently, the gas holding is worth 2.147 trillion rubles, or $28 billion — 36 times less than the $1 trillion capitalization that company head Alexei Miller promised to achieve two decades ago
The publication adds that Gazprom, which operates the world's largest proven gas reserves, lost its biggest customers after the Kremlin's failed attempt to "freeze" Europe in order to gain concessions on Ukraine.
"Gazprom's supplies to the European market have fallen to their lowest since the early 1970s, and plans to redirect gas exported to the EU to the Chinese market are failing," the media outlet concludes.
Recall
In June, the Moscow Exchange index collapsed by 4.23% on June 22, marking the strongest one-day drop since September 2022. Gazprom shares fell below 100 rubles for the first time since 2008.