Gazprom Shares Plummet On The Results Of Putin's Visit To China
- 20.05.2026, 19:17
Agreements on the construction of the Power of Siberia-2 gas pipeline failed to be reached again.
Gazprom shares fell sharply on the Moscow Exchange on Wednesday on the outcome of Russian dictator Vladimir Putin's visit to China, which again failed to reach agreements on the construction of the Power of Siberia-2 gas pipeline, The Moscow Times .
As of 6:32 p.m. Minsk time, Gazprom's securities fell by 3.5% to 119.06 rubles per unit and became the anti-leader in the rate of decline among all "blue chips" of the Russian market. During the day, the gas holding lost about 100 billion rubles of capitalization, and compared to the levels at the beginning of Putin's trip to Beijing - more than 120 billion, or $1.75 billion.
"Investors were waiting for specifics on the "Power of Siberia - 2", but again received uncertainty", - wrote analysts of "SberInvestments". Together with Gazprom, TMK securities collapsed by 6%. "The company was ready to supply large-diameter pipes for the "Power of Siberia - 2", and investors considered it as one of the possible beneficiaries of the project. But there is no decision on the gas pipeline, which means there is no large order," Sber notes.
The entire market is under pressure, states Freedom Finance Global analyst Vladimir Chernov. The Moscow Exchange Index, which includes four dozen major Russian companies, ended the day down 1% to 2,637.3 points. Rosneft shares fell by 2%, Gazprom Neft by 1.5% and Novatek by 1.3%.
The market is pressured by the "lack of concrete results of the negotiations between Russia and China," Chernov said.
Although Putin took five deputy prime ministers and ministers with him, talked about "limitless" prospects of cooperation with China and signed with Xi Jinping "a declaration on building a multipolar world," the president failed to bring new major contracts from Beijing. In the list of 40 documents signed at the end of the visit, none of them concerns oil and gas cooperation. There is not a single word about the Siberia-2 Force, which the Kremlin has been negotiating for more than 10 years.
The project of Gazprom's new gas pipeline left unagreed "nuances," presidential spokesman Dmitry Peskov said. There is no agreement, he said, on the timing of the start of construction of the pipeline, which is desperately needed by Gazprom, which has lost the European market.
The stumbling block for the new pipeline, which is desperately needed by Gazprom, which has lost the European market, is the price of gas, a source familiar with the situation told the Financial Times. According to him, China is demanding that the price be reduced to a level close to the Russian domestic price. And this is about $50 per thousand cubic meters, which is 5 times lower than Beijing pays now ($258 per thousand cubic meters), and 8.5 times lower than Gazprom's prices for other customers in far abroad ($420).