As investors take advantage of the long-awaited reform, which had restricted foreign ownership of the stock, Gazprom’s market capitalisation has risen by more than 25% in just four trading sessions, smashing through the $200 billion mark.
There’s a quick buck to be made here all right. Any takers?
And there is this little piece, also from UpstreamOnline, which is a publication held in high regard by those in the oil and gas industry:
Many Western financial analysts have been keen to dismiss the row between Ukraine and Russia over gas supplies as a storm in a tea cup. After all, they say, we would applaud attempts to push up prices if this was, for example, BP rather than Gazprom.
However, it’s worth remembering that most of these analysts work for investment banks that are making a fortune bringing Russian and Ukrainian companies on to the stock market in places such as London.
The last thing the banks want is for investors to shy away from the likes of the forthcoming Rosneft float because of the higher political risk. But higher risk there now is.
It is from a position in the oil and gas industry that I have been arguing that the gas supply row between Russia and Ukraine has increased political and financial risk, and is thus likely to harm foreign investment into Russia’s energy sector. It makes me somewhat contented that Upstream is making a similar case.