20 May 2026
Gazprom shares fell sharply on the Moscow Exchange on Wednesday following President Vladimir Putin’s visit to China, which again failed to reach an agreement on the construction of the Power of Siberia 2 gas pipeline.
By 6:32 PM Moscow time, Gazprom shares had fallen 3.5% to 119.06 rubles per share, becoming the worst-performing blue-chip stock on the Russian market. The gas holding company lost approximately 100 billion rubles in market capitalization in one day, or more than 120 billion rubles, or $1.75 billion, compared to levels at the start of Putin’s trip to Beijing.
“Investors were expecting concrete details on Power of Siberia 2, but were once again met with uncertainty,” SberInvestments analysts wrote. TMK shares also plummeted, along with Gazprom, by 6%. “The company was ready to supply large-diameter pipes for Power of Siberia 2, and investors considered it a potential beneficiary of the project. But there’s no decision on the gas pipeline, which means there’s no major order,” Sberbank notes.
The entire market came under pressure, notes Freedom Finance Global analyst Vladimir Chernov. The Moscow Exchange Index, which includes four dozen of Russia’s largest companies, ended the day down 1%, at 2637.3 points. Rosneft shares fell 2%, Gazprom Neft 1.5%, and Novatek 1.3%.
The market is under pressure from the “lack of concrete results from negotiations between Russia and China,” notes Chernov.
Although Putin brought five deputy prime ministers and ministers with him, spoke of “unlimited” prospects for cooperation with China, and signed a “declaration on building a multipolar world” with Xi Jinping, the president failed to bring home any major new contracts from Beijing. Of the 40 documents signed following the visit, not a single one concerns oil and gas cooperation. There’s no mention of the Power of Siberia 2 project, which the Kremlin has been negotiating for over a decade.
Regarding Gazprom’s new gas pipeline project, presidential press secretary Dmitry Peskov stated that there are still some unresolved “nuances.” He added that there are no agreements on the start date for construction of the pipeline, which Gazprom desperately needs after losing the European market.
The price of gas remains a stumbling block for the new pipeline, which Gazprom desperately needs after losing the European market, a source familiar with the situation previously told the Financial Times. According to him, China is demanding a price reduction to a level close to the domestic Russian price. This is approximately $50 per thousand cubic meters, which is five times lower than Beijing currently pays ($258 per thousand cubic meters) and 8.5 times lower than Gazprom’s prices for other customers abroad ($420).
“Gazprom shares fell sharply on the Moscow Exchange on Wednesday following President Vladimir Putin’s visit to China, which again failed to reach an agreement on the construction of the Power of Siberia 2 gas pipeline.”
This pipeline won’t ever be built. The chinks aren’t so stupid to get dependent on mafia land for their oil and gas.
The runt is as abysmal at negotiating as his pet poodle. 😂