Bloomberg News

Russian Stocks Rise; Gazprom Gains After Ukraine Gas Agreement

January 19, 2009

Russian stocks climbed for a second day, led by OAO Gazprom, after Russia and Ukraine agreed to end a dispute over natural gas that may have cost the company $1.8 billion in lost sales.

The 30-stock Micex (INDEXCF) Index advanced 1.2 percent at 10:32 a.m., to 615.12, with 26 companies gaining. The dollar-measured RTS index slid 1.1 percent to 560.47.

State-run Gazprom rose as much as 2.5 percent to 110.80 rubles ($3.32). Prime ministers Vladimir Putin and Yulia Timoshenko said early yesterday that the two countries agreed on prices and terms to resume Russian gas flows to Ukraine and more than 20 countries in Europe.

Gazprom, supplier of a quarter of Europe’s gas, has lost about $140 million a day in sales since the Jan. 7 cutoff of shipments via Ukraine, according to Moscow-based UralSib Financial Corp. The Russian company has probably lost $1.8 billion in export revenue, the Vedomosti newspaper reported today.

OAO Lukoil, Russia’s biggest non-state oil company, gained 1.6 percent to 1,044.36 rubles. State-run OAO Rosneft, the country’s biggest crude producer, added 1.5 percent to 111.08 rubles.

To contact the reporter on this story: Bradley Cook in Moscow at bcook7@bloomberg.net.

To contact the editor responsible for this story: David Merritt in London at dmerritt1@bloomberg.net.


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