Gazprom’s shares fell to a 15-year low
18 December 23:34
Shares of Russian gas giant Gazprom have plummeted to their lowest level since January 2009, falling to 106.1 rubles per share. This is reported by The Moscow Times, Komersant ukrainskyi informs
It is noted that this price is 2.4% lower than the closing level of Monday, December 16, and since the beginning of 2024, Gazprom’s securities have fallen by 33.5%.
However, the shares still have to fall a little more than 20% to reach their absolute historical lows.
Gazprom’s shares started falling about a week ago. Then the European Commission said that the EU was ready to stop transit of Russian gas and did not expect a significant impact on prices. Today, the European Commission confirmed that the EU has alternative sources of supply.
Gazprom’s profits were destroyed by a drop in exports – the company lost more than 80% of European exports compared to 2021, and supplies fell to 28 billion cubic meters.
In 2023, Gazprom suffered a record loss of 629 billion rubles since its creation in 1990, and production was minimal for this period – only 404 billion cubic meters.
The expiring transit contract with Ukraine was signed at the end of 2019. At that time, Moscow and Kyiv signed a package of documents between Gazprom and Naftogaz on a new transit agreement for a period of five years with the possibility of extending it for another ten years.
Under the terms of the contract, Gazprom guaranteed to pump a total of at least 225 billion cubic meters of natural gas: 65 bcm in 2020 and 40 bcm in 2021-2024. This year, Ukraine did not hold auctions for the long-term reservation of the gas transportation system on the border with Russia. The current transit agreement for pumping gas from Russia expires on December 31.
