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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

NASSCO Lays Keel for Jones Act Tanker Liberty

U.S. shipbuilder General Dynamics NASSCO hosted a keel laying ceremony on Thursday, May 26 for the Liberty, one of three new ECO Class Jones Act tankers under a

DSC Dredge Receives President’s E-Star Award

DSC Dredge, LLC, based in Reserve, La., has received the 2016 President’s “E-Star” Award for exports.   In a ceremony held on May 16, 2016, at the U.S. Department

TT Club Reports Robust Financial Results for 2015

TT Club has announced its financial results for the year ended December 31, 2015, and AM Best affirms its A- (Excellent) rating for the 10th consecutive year.   Knud Pontoppidan,

Contracts

Diana Charters Out Two Bulkers

Diana Shipping Inc. today announced that, through a separate wholly-owned subsidiary, it entered into a time charter contract with Bunge S.A., Geneva, for one of its Panamax dry bulk vessels,

Haven Marine Signs Service Contract with Svitzer

Haven Marine Services informs it has signed a five year contract with Svitzer which will see the yard service the requirements of Svitzer’s vessels within the Bristol Channel and Irish Sea areas.

Portugal PM Warns Lisbon Dock Workers to End Strike

Portugal's prime minister warned Lisbon dock workers on Friday that his patience was running out after a strike that has lasted a month, paralysing the city's ports.

Finance

Defense Appropriations Bill Includes $1 Bln for US Icebreaker

The U.S. Senate Appropriations Committee’s FY2017 Defense Appropriations Bill has included $1 billion in funding to accelerate construction of a new polar icebreaker for the U.

Higher Capesize Demand Pushes up Baltic Index

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Friday buoyed by higher demand for capesize vessels.

TT Club Reports Robust Financial Results for 2015

TT Club has announced its financial results for the year ended December 31, 2015, and AM Best affirms its A- (Excellent) rating for the 10th consecutive year.   Knud Pontoppidan,

Energy

Strike In France: Implications for Tanker Demand

After the oil industry suffered from a severe drought in Venezuela, forest fires in Canada and rebel attacks on oil installations in Nigeria, it is now facing

Floating Storage Flattens Fortunes of $50 Crude

The prices of WTI and Brent crude briefly rose above $50/bbl during intraday trading on Thursday, the highest level seen since the end of July 2015, giving traders a brief moment of optimism,

GloMEEP Project Forges Ahead with Train-the-Trainer Workshop

A global Train-the-Trainer workshop on energy efficiency has been delivered in China (23-27 May), preparing the personnel needed to cascade knowledge on energy

People in the News

US Navy Updated Zika Virus Infection Guidance

Navy Medicine released updated Zika Virus Infection guidance in NAVADMIN 121/16, May 26, communicating current information, travel precautions, and risk reduction

1,076 Graduate from U.S. Naval Academy

The U.S. Naval Academy graduated 1,076 men and women at the annual graduation and commissioning ceremony May 27 at Navy-Marine Corps Memorial Stadium. U.S. Naval Academy Superintendent Vice Adm.

GloMEEP Project Forges Ahead with Train-the-Trainer Workshop

A global Train-the-Trainer workshop on energy efficiency has been delivered in China (23-27 May), preparing the personnel needed to cascade knowledge on energy

Logistics

Greek Shipping – Still Number One!

Despite the many domestic and market challenges facing the Hellenic ship owning community, Greece has continued to strengthen its position as the largest ship owning nation in recent years,

A Year is a Long Time in Tankers

The latest Gibson Market Report focused on the age profile of the VLCC fleet and the prospects for trading life beyond 15 years of age.    Analysis of the Suezmax fleet shows a similar picture,

Deployment: The Transpacific Trade Steps Up To The Plate

In 2015, it was the Asia-Europe route which was the focus of changing deployment trends, says Clarksons Research.   This year, it is the Transpacific trade which

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Ship Electronics Ship Repair Ship Simulators 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: 0.1236 sec (8 req/sec)