Russia's energy giant shares crash to the lowest level since 2009

According to the Moscow Exchange, Gazprom shares fell to 99.9 rubles at the start of trading.

Later, the price partially recovered from the drop but remained in the red. As of the end of the day, the company’s shares were down 3.67% and trading at 100.65 rubles.

This is the lowest level for the Russian company’s shares since 2009.

Why are shares falling?

As Reuters notes, several factors are affecting the value of Gazprom’s shares.

Among them:

• Europe’s rejection of Russian energy resources following the start of the war against Ukraine
• Falling oil prices amid progress in negotiations between the US and Iran
• Absence of a new major gas deal between Russia and China.

In addition, analysts are pointing to a drone attack on a Moscow oil refinery owned by Gazprom Neft, Gazprom’s oil division.

How company’s value changed

Over the past 12 months, Gazprom’s shares have lost about 20% of their value.

The company’s current market capitalization stands at about 2.382 trillion rubles, or $32.15 billion.

Reuters notes that in 2008, Gazprom’s management announced its intention to increase the company’s value to $1 trillion.

Attack on Moscow

Ukraine has been systematically targeting Russia’s oil refining infrastructure. And on the morning of June 18, the Ukrainian Armed Forces launched their most massive attack on Moscow and the surrounding region. The oil refinery in Kapotnya was hit, and thick plumes of smoke rose over the city.

Sergei Sobyanin, mayor of the Russian capital, confirmed the strike.

The consequences were immediate. Russian authorities restricted fuel sales, lines of cars formed at gas stations, and gasoline prices skyrocketed.

According to ISW analysts, the strikes on Moscow caused panic in Russia and drew harsh criticism of the Kremlin.