July 20, 2008

Gazprom becomes world 3rd largest capitalization company

Kommersant.com reported that OAO Gazprom has become the third largest company in the world by market capitalization. Its stock gained 5.34% on the MICEX on May 8th 2008, raising the monopoly’s market value to USD 348 billion and knocking the Chinese cellular communications operator China Mobile, worth USD 341 billion, out of third place in the world ranking.

According to Reuters, the American company ExxonMobil occupies first place on that list at USD 476 billion and Petrochina is in second place with USD 447 billion.

Analysts link the jump in Gazprom’s value with the assumption of the Russian presidency by its chairman of the board. As Mr Medvedev will leave the post of Gazprom chairman next month, after a new board of directors is approved. Besides that, growth in the price of oil and gas companies is the result of Mr Vladimir Putin’s speech at the time of the consideration of his candidacy as prime minister. He said at that time that the taxes paid by companies in that sector had to be reduced in order to stimulate production and processing growth.