Gazprom's gas prepayment demand risks end to stock rally, analyst says

|By:, SA News Editor

Gazprom’s (OGZPY) 24% rally from this year’s low in March likely will end soon as the crisis in Ukraine threatens to disrupt the Russian gas producer’s exports, according to Sberbank Asset Management.

Gazprom’s demand that Ukraine pay up front for its natural gas or be cut off could backfire on the company, since shutting off the tap might disrupt deliveries to the rest of the region, says Sherbank's Anton Rakhmanov.

“The Russian market is driven by the Ukraine crisis, and until it’s resolved there can be absolutely no sustainable rally in Gazprom," the analyst says.