Buying Gazprom shares is interesting but scary

Against the background of the abnormally cold winter in Europe, gas reserves in European underground storage facilities continue to decrease, with 65.5 billion cubic meters of gas withdrawn by March 25. This summer we will need 57% more gas than last year to replenish the reserves. Gazprom has already increased gas exports to non-CIS countries by 28.3% in the period from January 1 to March 15, 2021. Despite this, the share price has not yet been able to overcome the resistance of 230 rubles.

When will Gazprom's shares start to grow? Sergey Kaufman, an analyst at FINAM, answered Fortrader magazine's question.

- In our opinion, the main obstacle for the growth of Gazprom's shares is non-market factors related to possible sanctions and the general level of geopolitical tension.

Gazprom stock quotes

The gas prices in Europe are steadily holding above $220 per thousand cubic meters, and gas storage capacity is around 31%. However, investors are not in a hurry to buy, as there are regular reports about upcoming sanctions against the Nord Stream-2 project by the United States, as well as about possible sanctions against Russia in general. However, it is unlikely that sanctions against NSP2 will be really significant for Gazprom, as it is already extremely difficult to stop the construction of this project, and it is likely that the introduction of insignificant measures may become a trigger for the growth of shares, as it will significantly reduce the level of uncertainty. But significant sanctions against Russia as a whole (e.g., disconnection from SWIFT, which has been much discussed in recent weeks) could lead to an outflow of funds from non-residents from the entire Russian market, which is the main danger at the moment.