Shares of Russia’s Gazprom fell to their lowest level in 17 years on Wednesday following reports that negotiations with China over the Power of Siberia 2 gas pipeline have effectively stalled.<\/p>\n
During trading on the Moscow Exchange, Gazprom shares dropped to 89.85 rubles per share, their lowest level since 2008. The stock lost more than 3% during the session.<\/p>\n
The decline came after Western media reports suggested that China had suspended talks on the new pipeline, which the Kremlin had hoped would help offset the loss of a significant portion of the European gas market.<\/p>\n
According to The Wall Street Journal, during Vladimir Putin’s most recent visit to Beijing, Chinese officials instructed Russian representatives not to raise the issue of Power of Siberia 2 again until Moscow revised its negotiating position. In subsequent discussions, the Chinese side reportedly made it clear that it would only support the project if gas supplies were priced close to Russia’s domestic market rates.<\/p>\n
Moscow had previously expected that the new pipeline through Mongolia would allow it to redirect part of the gas exports that had previously been destined for Europe. However, negotiations have run into difficulties over pricing and contractual terms.<\/p>\n
Over the past month, Gazprom’s shares have fallen by more than 20%. Since the beginning of July, the stock has declined by approximately 11%, while year-to-date losses stand at around 27%. Compared with their peak in the autumn of 2021, the company’s market capitalization has shrunk by nearly 80%.<\/p>\n
Gazprom’s current market value is estimated at approximately 2.15 trillion rubles ($28 billion). This is a fraction of the $1 trillion valuation that CEO Alexey Miller predicted the company would achieve two decades ago.<\/p>\n
Gazprom’s difficulties have been exacerbated by the loss of its key European customers following the reduction of gas supplies after Russia launched its full-scale war against Ukraine. The company’s exports to Europe have fallen to their lowest levels since the early 1970s.<\/p>\n
At the same time, additional pressure on the Russian market has emerged from the prospect of new U.S. sanctions. U.S. senators have introduced an updated Sanctioning Russia Act 2026, which provides for the possibility of blocking sanctions against Sberbank, VTB, Gazprombank, and the Central Bank of the Russian Federation.<\/p>\n","protected":false},"featured_media":151925,"menu_order":0,"template":"","newscat":[9],"newstag":[],"issues":[],"class_list":["post-151924","news","type-news","status-publish","has-post-thumbnail","hentry","newscat-novosti"],"_links":{"self":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/news\/151924","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/types\/news"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/media\/151925"}],"wp:attachment":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/media?parent=151924"}],"wp:term":[{"taxonomy":"newscat","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/newscat?post=151924"},{"taxonomy":"newstag","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/newstag?post=151924"},{"taxonomy":"issues","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/issues?post=151924"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}