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)


People & Company News

MN100: MarineCFO

The Company: Founded in 1992, UA Business Solutions was a pioneer in the field of Enterprise Resource Planning (ERP) and an early Microsoft Partner. The ERP evolution

MN100: All American Marine, Inc.

The Company: All American Marine Inc. was founded in 1987 and specializes in the construction of custom tailored aluminum boats from 30 to 150 feet LOA. Today,

Five Minutes with Paul Switzer

Five minutes with Paul Switzer - Manager, Shipbuilding & Offshore, Viega   For readers not familiar with Viega, please give a ‘birds eye’ view, putting the company

Contracts

Thyssenkrupp Wins Qatar Integrated Rail Project

Thyssenkrupp has been awarded a contract to manufacture, supply, install and maintain more than 500 elevators and escalators for Doha’s metro network, a part of the Qatar Integrated Rail Project.

ACE Winches Bags Order from Vard

Deck machinery specialist ACE Winches said it has been awarded a spooling contract with Vard Group AS for Norway’s largest construction vessel.   The scope of work includes the spooling of two 3,

Fugro, US Army Corps of Engineers Ink Mapping Deal

Fugro has been awarded a photogrammetric and LIDAR surveying and mapping contract by the U.S. Army Corps of Engineers, St. Louis District, Missouri. The agreement

Finance

Cosco Eyes Spanish port of Algeciras

Algeciras Bay Port Authority in southern Spain has put up a tender for its third container terminal, and China's Cosco Shipping Ports is already being mentioned as a fore runner candidate,

UASC's Dismal Performance

United Arab Shipping Company (UASC), which is close to merging with Hapag-Lloyd, revealed enormous deficits and a massive debt in its key financial figures, says Alphaliner.

Canada May Ask Far-offshore Drillers to Pay Extra

Canada may ask oil companies to contribute to the hundreds of millions of dollars or more the country has to pay to an international body if they drill far offshore,

Energy

US Offshore Lease Sale Yields $18 Mln in High Bids

Today’s U.S. oil and gas Lease Sale 248 garnered $18,067,020 in high bids for 24 tracts covering 138,240 acres in the Western Gulf of Mexico Planning Area, announced

Canada May Ask Far-offshore Drillers to Pay Extra

Canada may ask oil companies to contribute to the hundreds of millions of dollars or more the country has to pay to an international body if they drill far offshore,

Höegh LNG Speeds up FSRU Conversion

Höegh LNG Holdings Ltd. today announced that it has signed agreements with Wärtsila Oil and Gas (EPCIC regas) and Moss Maritime (engineering) for its first FSRU conversion project,

People in the News

Five Minutes with Paul Switzer

Five minutes with Paul Switzer - Manager, Shipbuilding & Offshore, Viega   For readers not familiar with Viega, please give a ‘birds eye’ view, putting the company

Höegh LNG Speeds up FSRU Conversion

Höegh LNG Holdings Ltd. today announced that it has signed agreements with Wärtsila Oil and Gas (EPCIC regas) and Moss Maritime (engineering) for its first FSRU conversion project,

Fugro, US Army Corps of Engineers Ink Mapping Deal

Fugro has been awarded a photogrammetric and LIDAR surveying and mapping contract by the U.S. Army Corps of Engineers, St. Louis District, Missouri. The agreement

Logistics

Cosco Eyes Spanish port of Algeciras

Algeciras Bay Port Authority in southern Spain has put up a tender for its third container terminal, and China's Cosco Shipping Ports is already being mentioned as a fore runner candidate,

Another Hurdle for The Ocean Alliance

Commissioner William P. Doyle of the U.S. Federal Maritime Commission today voted in favor of requesting additional information from The Ocean Alliance parties.

Delaware River Ship Arrivals Continue Gains in 2016

Maritime Exchange for the Delaware River and Bay President Dennis Rochford has announced the tristate port vessel arrival statistics for the first six months of 2016.

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Pipelines Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | 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: 0.1256 sec (8 req/sec)