Gazprom's stock plunges 3.5% as Putin's China trip yields no gas deal
Gazprom’s shares fell sharply after Vladimir Putin’s visit to China ended without a deal on the Power of Siberia 2 gas pipeline. The Kremlin confirmed no agreement was reached on the project’s construction timeline, leaving investors disappointed.
The lack of progress sent Gazprom’s stock down by 3.5%, closing at 119.06 rubles per share. This made it the worst-performing stock among Russia’s blue-chip companies. The broader MOEX Russia Index, tracking the country’s 40 largest firms, also dropped 1% to 2,637.3 points.
Gazprom’s market value shrank by nearly 100 billion rubles in a single day. Since the start of Putin’s trip to Beijing, losses have exceeded 120 billion rubles (around $1.75 billion). Analysts at SberInvestments noted that investors had hoped for concrete progress but instead faced more uncertainty. The main obstacle remains gas pricing, with China insisting on rates close to Russia’s domestic prices. TMK, a major pipe manufacturer, saw its shares fall by 6% due to the stalled negotiations. Vladimir Chernov, an analyst at Freedom Finance Global, linked the market downturn to the lack of tangible results from the talks. No new oil and gas contracts were signed during Putin’s visit, adding to the disappointment.
The failure to secure an agreement on Power of Siberia 2 has hit Gazprom and related industries hard. With no resolution in sight, the financial impact on Russian energy firms continues to grow. The market reaction reflects concerns over delayed infrastructure projects and unresolved pricing disputes.
