Recent political uncertainty involving the invasion of Ukraine by the Russian forces has put a strain on Gazprom’s share price.
The Future of Gazprom
Since the invasion began, Gazprom’s share prices have become very uncertain. However, the drop in price started a week before the launch of the invasion, and the company has seen a 35 per cent drop in price since. In addition, Gazprom’s share prices were also affected by the closing of the Russian stock market, where the company is listed for a month.
However, the current political climate is highly likely to determine where the prices of Gazprom will be in the future. This week, the President of Russia, Vladimir Putin, directed the company and his country’s central bank to prepare for ruble gas payment. This announcement is a step back from the dollar controlled oil industry.
However, it is unclear if the European countries that heavily rely on Russian gas will follow the directive. What is even more uncertain is whether Gazprom is prepared to switch from dollar to rubble. Gazprom company has also come under fire following the invasion, with countries such as the UK mulling over the possibility of taking over Gazprom units in their country.
If such actions become the norm, then Gazprom share prices are likely to see a hit, which will result in a drop. In addition, countries such as the UK have also come face to face with the idea of Gazprom failing. For instance, the plight of UK Gazprom’s too big to fail posture has prompted alarm in the UK, as the government continue to mull on what to do with the company.
However, even with a barrage of bad news for the company, it has also had positives in the past few weeks. This includes the announcement that the company was still able to transport its gas through Ukraine to the EU.
Gazprom Share Price Prediction
In the next days and weeks, a lot of what moves the market will mostly be political and not technical. This is why my analysis of Gazprom is still bearish, although today’s trading session has seen Gazprom’s share price rise to trade at 216.
Gazprom Daily Chart
