LSE Suspends Gazprom As of May 31st
The London Stock Exchange announced today that it has suspended shares of Russian state-owned energy supplier Gazprom from trading. The company reportedly requested its shares be suspended a full month ago with May 31st the agreed date for the suspension to become active.
Notably the suspension comes just as the EU agreed a partial ban on Russian oil imports to the eurozone. The agreement covers around two-thirds of Russian oil entering the EU with a target of increasing this to 90% by the year end. The ban refers to seaborne Russian oil with a temporary exemption in place for pipeline oil, primarily involving countries such as Hungary and Czech Republic which account for only around 10% of Russian oil imports.
Gazprom recently announced it will cease supplying natural gas to major Dutch firm Gas Terra. This comes on the back of similar cessation of supplies to Poland and Finland. Further such moves might now be likely in the wake of the EU embargo.
Technical Views
Gazprom
Following the recovery rally off the 207.48 level, Gazprom shares are now testing the bearish trend line from YTD highs, having broken through several key level on the way up. While both MACD and RSI are bullish here, we are seeing a little bearish divergence which is worth watching. Should price break the trend line resistance, 337.14 is the next target to note.
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