Gas exporter seeks closer ties with Asia as western sanctions tighten access to markets
Russian natural gas company OAO Gazprom has listed its ADRs on Singapore Stock Exchange as it seeks to cement ties with Asia amid US and European sanctions against the company stemming from the conflict between Russia and Ukraine.
State-run Gazprom – which recently shut off gas supplies to Ukraine under orders from the Russian government, intensifying a showdown between Europe, the US and Russia – says Europe remains its main market, accounting for more than 60 percent of its exports, but that it is seeking closer ties with Asia.
The listing ‘is a significant result of the company’s efforts to broaden its investor base globally,’ Gazpromsays in a press release. ‘Investors from the Asia-Pacific region are getting access to Gazprom’s remarkable long-term growth. Gazprom is committed to creating long-term value for all its shareholders, and the Singapore listing will positively support the liquidity of Gazprom’s shares.’
On Friday, September 19, the company tweeted from its @GazpromNewsEN handle that it was considering a listing in Hong Kong as well.
As the conflict between the pro-western government in Ukraine and pro-Russia rebels in the east of the country simmers, the US and Europe have hit large Russian companies and political leaders with a series of sanctions, including barring Russian companies from the Eurobond market and a ban on the export of goods, services or technology for many types of oil and gas exploration to Russian firms, including Gazprom.
Gazprom, whose ADRs already trade on the London Stock Exchange, signed a $400 bn gas supply contract with China earlier this year as it seeks to strengthen its ties with Asia. The company, 5 percent of which is held by UK funds and 10 percent by US funds, told its IR team early in the year to stop marketing to investors in Europe and the US and instead focus its efforts on the Middle East and Asia.
