Gazprom sees perspective in share buyback

Gazprom has suddenly returned to a discussion of the idea of ​​buyback, which was stopped 1.5 years ago because of the collapse of the market against the background of the Ukrainian crisis. According to the Kommersant’s information, the decision on this matter is still pending. Sources of the Kommersant and analysts agree that the dynamics of the Gazprom’s shares price is now determined by the political situation and it makes sense to conduct the buyback only if you are sure that it at least will not deteriorate.

At the meeting of the Gazprom’s Board of Directors on October 20 the possibility to buy back shares of the monopoly was discuss, the Tass reported, citing a source, and it was confirmed by the Kommersant’s interlocutors. According to the Kommersant’s information, no decisions have been taken, and when they should be expected is not clear. According to one source of the Kommersant, the return to the matter of buyback was caused by the fact that the shares are still traded at a very low - in the opinion of the management - level and the company could capitalize on their subsequent growth. The shares of Gazprom responded sluggishly to the message about the buyback, first grew by 1.7%, but by the closure of the day they decreased by 0.65% while the MICEX index was reduced by 0.74%.