Gazprom Sinks on China Blow, But Russian Stocks Rally

Posted by Greg Trauthwein
Tuesday, May 20, 2014
Gazprom HQ. Photo: Gazprom

Russian stock indexes continued to rally on Tuesday, boosted by expectations that Russia will not intervene in Ukraine's political crisis while shrugging off negative news on the progress of gas talks between Russia and China.

The latter, however, hit Russia's leading gas producer Gazprom, which fell 1.8 percent, bucking the generally positive market trend.

The rouble-denominated MICEX index was up 0.8 percent by the close at 1,425.6 points, while the dollar-based RTS index had risen 0.7 percent to 1,298.6 points.

Russian stocks have rallied in May as investors conclude that Russia is unlikely to provoke tough economic sanctions from the West by intervening directly in Ukraine, despite continuing uncertainty about the outcome of Ukraine's political crisis.

President Putin ordered Russian troops to withdraw from regions bordering Ukraine on Monday, pushing the MICEX 1.5 percent higher and the RTS up 2.2 percent.

"Although the withdrawal of troops isn't happening too fast, investors are convinced that Russia won't interfere in the elections (in Ukraine)," said Oleg Dushin, senior analyst at Zerich Capital Management.

Ukraine will hold a presidential election on May 25 and Western governments have warned that they may impose tougher sanctions if Russia disrupts it.

The positive market momentum continued in early trading on Tuesday, but stocks were sent into the red temporarily after a spokesman for Putin said that Russia and China had not yet agreed a gas supply deal.



CHINA SUPPLY DEAL

The deal to supply China with an annual 38 billion cubic meters of gas for 30 years, worth about $400 billion, has been held up by failure to agree a price.

Securing a contract to supply the massive Chinese market is becoming increasingly important for the Kremlin as the crisis in Ukraine prompts European countries to look at ways to reduce their dependency on Russian natural gas.

While Gazprom remained heavily down on the day, most other Russian stocks eventually shrugged off the news from China and resumed their rise.

Hydroelectric company RusHydro was up 10.6 percent after signing cooperation deals with China's PowerChina and Dongfang Electric International Corporation, under which the latter will invest in Russian power generation.

Shares in independent gas producer Novatek also outperformed, up 1.2 percent, after it signed a contract with China's CNPC to supply 3 million tonnes a year of liquefied natural gas.

(Reuters)

Maritime Reporter January 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Kongsberg Expands Louisiana Office, Training Facility

Kongsberg Maritime has purchased approximately 5.2 acres for new construction on an 82,980 sq ft office and training facility. Construction on the James Business

HII Acquires Engineering Solutions Division

Huntington Ingalls Industries (HII) has acquired the Engineering Solutions Division of The Columbia Group, a designer and builder of unmanned underwater vehicles

Sjo Resigns from Polarcus Board of Directors

Polarcus Limited announced that Hege Sjo will resign from its board of directors effective February 2, 2015.   Sjo has accepted an appointment as Deputy Director

Contracts

Imabari to Build 20,000TEU Containerships

Imabari Shipbuilding Co., Ltd. announced it has secured newbuild orders with the cooperation of Marubeni Corporation for 11 units of 20,000TEU Ultra-Large Container Carriers,

New Survey Vessel Ordered for the Port of London

The Port of London Authority (PLA) has ordered a new purpose-built survey catamaran, a CTruk MPC19, due to enter service on the river Thames later this year.   The

NAO Secures PSV Contracts with Oil Major

Nordic American Offshore Ltd. (NAO) informs that it has secured platform supply vessel (PSV) contracts with a major oil company.   NAO’s two new contracts with are for four months firm periods,

Finance

Shippers Must Monitor Greek Government Changes

Moore Stephens says shipping must monitor developments in wake of Greek government change   International accountant and shipping adviser Moore Stephens says

Chevron Scraps 2015 Share Repurchase Program

Chevron Corp halted its 2015 share repurchase program on Friday, a move to conserve cash amid tumbling oil prices.   The company's shares extended loses on the news,

Marquette Transportation Reportedly for Sale

Marquette Transportation Company LLC, a U.S. towboat operator, is exploring a sale that could value it at more than $1 billion and has attracted the interest of

Energy

Chevron Scraps 2015 Share Repurchase Program

Chevron Corp halted its 2015 share repurchase program on Friday, a move to conserve cash amid tumbling oil prices.   The company's shares extended loses on the news,

BOEM Issues Supplemental Environmental Impact Statement

The U.S. Department of the Interior, Bureau of Ocean Energy Management (BOEM), announces the availability of the Draft Supplemental Environmental Impact Statement

NAO Secures PSV Contracts with Oil Major

Nordic American Offshore Ltd. (NAO) informs that it has secured platform supply vessel (PSV) contracts with a major oil company.   NAO’s two new contracts with are for four months firm periods,

People in the News

Congestion is Port of Long Beach’s Toughest Issue

Slangerup’s State of the Port address outlines goals for Energy Island, smarter supply chain   In his first-ever State of the Port address, Port of Long Beach

Marquette Transportation Reportedly for Sale

Marquette Transportation Company LLC, a U.S. towboat operator, is exploring a sale that could value it at more than $1 billion and has attracted the interest of

Tohoku Electric's LNG Buy Sets Asian Spot Level

Japanese utility Tohoku Electric has purchased an LNG cargo for delivery in the third week of March at a price in the low $7 per million British thermal unit (mmBtu) range,

Logistics

Congestion is Port of Long Beach’s Toughest Issue

Slangerup’s State of the Port address outlines goals for Energy Island, smarter supply chain   In his first-ever State of the Port address, Port of Long Beach

Shippers Must Monitor Greek Government Changes

Moore Stephens says shipping must monitor developments in wake of Greek government change   International accountant and shipping adviser Moore Stephens says

ISS Palumbo UK Acquires Union Transport

ISS Palumbo UK, part of maritime services provider Inchcape Shipping Services (ISS), has acquired U.K. freight forwarding specialist Union Transport (Newcastle) Ltd.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Navigation Offshore Oil Pod Propulsion Port Authority Salvage Ship Simulators Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2196 sec (5 req/sec)