Shares Of Russia's Largest Commodity Companies Fell On The Results Of Putin's Visit To China
4- 3.09.2025, 22:14
- 5,172
Neither oil companies, coal miners, nor Novatek have seen any new agreements.
A three-day visit by Vladimir Putin to China, during which the Russian president hoped to agree to increase natural resource exports from Russia, failed to inspire investors on the Moscow Exchange, reports The Moscow Times.
Shares of Russia's largest commodity exporters fell following Putin's trip, who attended a military parade, announced the construction of a multipolar world, but made no significant new deals to sell Russian raw materials.
Shares of Russia's largest commodity exporters fell following Putin's trip, who took part in a military parade, announced the construction of a multipolar world, but made no significant new deals to sell Russian raw materials.
The Moscow Times. Novatek, the largest LNG exporter, became cheaper by 1.7%, while coal miner Mechel was 2.1% cheaper. "Gazprom" lost 1.07% on Monday, 2.03% on Tuesday and another 0.23% on Wednesday - a total of more than 200 billion rubles of capitalization.
"Investors, contrary to expectations, were not impressed by the agreements reached between Russia and China so far in the energy sector", - says analyst of "Veles Capital" Elena Kozhukhova.
New agreements were not seen neither by oil companies, nor coal producers, nor "Novatek", for which China has become the largest sales market. The only "success" was the third memorandum on the construction of the Power of Siberia-2 gas pipeline in 20 years, which the Chinese side has not officially confirmed. Gazprom also agreed to increase gas supplies to China through the existing pipelines - by 8 billion cubic meters per year, but only from 2031.
Gazprom's shares led the decline of commodity exporters. If "Power of Siberia-2" is realized, it will require huge expenses, analysts of IFC "Solid" explain: "In the best case the company will refuse dividends, in the worst case - will further increase the debt".
The request to increase the purchase of natural resources in Russia was one of the key on the agenda of Putin's visit to China, said earlier Reuters sources familiar with the preparation of the trip. According to them, Moscow is alarmed by the decline in trade with China, which is recorded this year for the first time since the beginning of the war.
January-May oil supplies to China fell by 11% (to 49.11 million tons), oil products - by 28% (to 5.51 million tons), LNG - by 13% (to 3.22 million tons), timber - by 10% (to 4.53 million tons), coal - by 10% (to 38.97 million tons). Total trade turnover fell 8%, according to Chinese customs data.
The stock market as a whole sagged 1.2% on the Moscow Exchange index over the three days of Putin's trip. On Tuesday, it hit a 3-week low of 2842.8 points, but rose to 2867.5 points on Wednesday.
Shares are still under pressure from geopolitical tensions, notes Kozhukhova of Veles Capital: "(Donald) Trump, in particular, said in the evening that the U.S. is considering imposing the second and third phases of oil sanctions against Russia."
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