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The foundations are starting to crack at Gazprom (OGZPY.PK), the central pillar in the economic...

The foundations are starting to crack at Gazprom (OGZPY.PK), the central pillar in the economic and political system constructed by Russia's Vladimir Putin, according to a Washington Post report. Gazprom has no competitive answer to the worldwide decline in gas prices, and Putin and his cronies have squeezed so much from it, there may be little left to wring out.
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Comments (3)
  • Veritas1010
    , contributor
    Comments (1652) | Send Message
     
    "The foundations are starting to crack". Says who? Newspeak? This is as big a bit of western propaganda bombast as used to be issued by the Radio Moscow crew on the other side years ago.

     

    By the same measure what about XOM, or COP, BP, TOT, E, and a host of much smaller E&P outfits? Yes, the gas glut DOES hurt the producers, especially those dependent on gas primarily. But, the majors will survive and, newsflash...GASPROM will sell to someone else besides the Ukraine or Western Europe if necessary.

     

    Get real.
    24 Sep 2012, 08:00 PM Reply Like
  • Maninder Batra
    , contributor
    Comments (572) | Send Message
     
    european and asian gas prices are oil indexed and gazprom sells on oil index not henry hub based.

     

    and Putin squeezing money lol. Gazprom pays record dividends every year,unlike the treasury bonds of USA whose interest is manipulated and investors ripped off by federal reserve and the kleptocratic US govt.
    25 Sep 2012, 08:19 AM Reply Like
  • kmi
    , contributor
    Comments (4307) | Send Message
     
    A few things...

     

    Russia's GDP is something like 70% energy based...
    There's some new movement to delink gas prices from the oil index...
    There's a couple of new pipelines in planning/development to bring Europe gas from non-Russian sources...

     

    Russia's fortunes are intimately and very closely tied to energy prices and this can be witnessed spectacularly over the period of 2000-today, with Russia's power and influence reaching its apex along with gas/oil prices in 2008-9.
    25 Sep 2012, 01:50 PM Reply Like
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