Gazprom Shares Broke Through A 17-year Low
- 15.07.2026, 14:11
Due to reports that gas negotiations with China have been suspended.
Gazprom shares on the Moscow Exchange on Wednesday hit a 17-year low following news that China had de facto suspended negotiations on the "Power of Siberia-2," through which the Kremlin had hoped to replace lost European gas markets, writes The Moscow Times.
During trading, Gazprom shares fell to 90.21 rubles—their lowest level since November 20, 2008—losing nearly 3% at one point. Since the beginning of July, Gazprom has fallen 11%; since the start of the year, it has fallen 27%; and compared to its pre-war record highs in the fall of 2021, it has lost nearly 80% of its market capitalization. The gas giant’s market capitalization currently stands at 2.147 trillion rubles, or $28 billion—36 times less than the $1 trillion market capitalization that company CEO Alexey Miller promised to reach two decades ago.
Operating the world’s largest proven gas reserves, Gazprom has lost its biggest customers following the Kremlin’s failed attempt to “freeze” Europe in order to secure concessions on Ukraine. Gazprom’s shipments to the European market have fallen to their lowest level since the early 1970s, and plans to redirect gas destined for the EU to the Chinese market have been a fiasco.
According to The Wall Street Journal, during Vladimir Putin’s most recent visit to Beijing, Chinese officials asked that the issue of the new “Power of Siberia 2” gas pipeline not be raised again until Russia’s terms change. China, according to WSJ sources, is demanding that gas prices be lowered to domestic Russian levels, which are five times lower than Gazprom’s current prices for China—prices that already include a discount of more than 30%.
China apparently believes that if Russia has no alternative markets left, it can dictate its own terms, notes investment banker Evgeny Kogan. Starting in September 2027, the European embargo on pipeline gas from Russia will take effect, which means that Gazprom will lose its last customers in the EU—Hungary, Slovakia, and Greece.
“Currently, China has a sufficient ‘window of opportunity’ to engage in dumping, since many Middle Eastern and North African LNG suppliers will be willing to sell gas to China at a discounted price, since they are unable to sell gas to Europe due to the uncertain situation surrounding the Strait of Hormuz,” notes Natalia Milchakova, a leading analyst at Freedom Global .
Investments in “Power of Siberia 2” are estimated at $10 billion, she points out. “Furthermore, if the gas pipeline runs through Mongolia, the question will inevitably arise as to what price Mongolia will agree to pay for Russian gas in order to participate in the project. It is quite possible that this country may demand a discount on the price, similar to the discount granted to China,” adds Milchakova.