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Gazprom Shares Fall on Lack of Dividend, China Pipeline

MOSCOW, May 21 (Reuters) - Gazprom shares continued their slide on Thursday, pressured by the previous day's announcement that ​it would not pay a dividend on ‌2025 results and by Russia's continued failure to clinch a deal on a new gas pipeline to China.

Shares in ​Russia's largest natural gas producer lost almost ​1% to 117.9 roubles in early trade on ⁠the Moscow stock market, extending the previous day's ​3.5% decline.

"Yesterday, the Moscow Exchange index fell by ​1.2%, unable to withstand a double disappointment: reports from China about the lack of clarity regarding the timeframe for implementation ​of the Power of Siberia 2 project and ​Gazprom's refusal to pay dividends for 2025," Sinara Investbank said ‌in ⁠a note.

Gazprom's capitalisation has dropped to only 2.8 trillion roubles ($40 billion), a far cry from the $1 trillion promised by management in 2008.

The company has lost ​lucrative European ​Union sales ⁠since Russia's invasion of Ukraine in 2022 ruptured trade and political ties with ​most of Europe.

Russian President Vladimir Putin met China's ​Xi ⁠Jinping in Beijing on Wednesday, but the two leaders failed to reach a breakthrough on the planned ⁠Power ​of Siberia 2 pipeline that ​would enable Russia to more than double its natural gas exports ​to China.

($1 = 70.8000 roubles)

Reporting by Reuters Editing by David Goodman

Source: Reuters


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