Gazprom Shares Plunge Below 2008 Crisis Levels

Gazprom’s Stock Market Turmoil

According to ХВИЛЯ: On July 16, Gazprom shares on the Moscow Exchange dropped to 83.98 rubles each, falling below the lowest point recorded during the 2008 financial crisis. The stock lost nearly 5% in a single day, surpassing the previous historic low of 84 rubles set on October 24, 2008. Just a day earlier, on July 15, the stock had breached the 90-ruble threshold for the first time since 2008.

In 2023, the company reported a record loss of 629.1 billion rubles under International Financial Reporting Standards (IFRS). Over the past year, Gazprom shares have shed 31.1% of their value, and about a quarter of that loss occurred in the last month alone. Compared to the all-time high of 369.50 rubles reached in May 2008, the stock has now declined by approximately 40%.

Key Factors Behind the Decline

On July 16, the Moscow Exchange index fell to 2,040 points, its lowest level since October 2022. Analysts attribute the pressure on Gazprom shares to several factors, including:

• Overall weakness in the Russian stock market
• Uncertainty over dividend payments
• Geopolitical and sanctions-related risks

The company has not paid dividends for several consecutive years, and the market does not expect any changes in the near future. The primary cause of the losses is a dramatic collapse in gas exports to Europe, which have plummeted since the start of the full-scale war. On June 29, Gazprom shareholders formally confirmed the decision to withhold dividends for the 2025 fiscal year.

The situation with Gazprom shares reflects broader economic instability in Russia, exacerbated by international sanctions and declining demand for Russian gas. The absence of dividends and significant financial losses may erode investor confidence, further complicating the company’s financial outlook. Prolonged market uncertainty could also negatively affect other Russian companies that depend on exports and international finance.

The recent plunge in Gazprom shares is part of a larger trend affecting the Russian stock market, which has seen significant declines recently. As reported, the market has fallen back to levels not seen since February 2023, driven by various economic pressures. For a detailed analysis of the current state of the Russian stock market and the factors contributing to its instability, read more about the recent market crash.