Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  MOSCOW INTERBANK CURRENCY EXCHANGE  >  Gazprom PAO    GAZP   RU0007661625


News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations
The feature you requested does not exist. However, we suggest the following feature:

Putin seeks proposals on Basel III risk issue this month -economy minister

share with twitter share with LinkedIn share with facebook
share via e-mail
08/15/2019 | 08:35am EDT
FILE PHOTO: Russian President Putin attends the International Forum

MOSCOW (Reuters) - President Vladimir Putin has given officials until the end of August to make proposals on how Russia should assess commercial borrowers' risks under new international rules that the domestic banking sector plans to adopt, Economy Minister Maxim Oreshkin said.

The central bank is voluntarily signing the sector up to the Basel III reforms, aimed at strengthening the regulation, supervision and risk management of banks and due to be fully implemented within the European Union by 2027.

But the country's institutions are at odds over what criteria they should use to conduct risk assessments of borrowers under the Basel III framework.

The central bank wants to use in-house assessments, while the finance ministry says the capital buffers banks will require under the new rules should be based on domestic agencies' credit ratings.

The domestic agencies, whose assessments are not recognised internationally, have grown in influence since 2014, when Russia was subject in western sanctions that have triggered sovereign ratings cuts by the main international agencies.

Top Russian borrowers including Gazprom, Tatneft and Novatek have backed the finance ministry and asked Putin in a letter to do likewise.

Oreshkin said that, in late July, Putin gave his ministry and other officials a month "to study this and see what could be changed."

According to the companies' letter, using domestic ratings as a reference point would allow banks to cut lending rates, strengthen financial stability and ease the refinancing of external debt.

"The companies' concern could be understood: they could not forecast how accessible the external debt market could be due to the sanctions and aim to broaden availability of a loan inside Russia's financial system," Oreshkin told Reuters.

Russia is not obliged to follow the Basel III rules and some of its banks have publicly called on the central bank to abort the switch or change risk assessment rules.

The central bank, which has replied that it is committed to Basel III, says its approach of in-house risk assessment allows the system to "free up much more capital to lend to the economy."

Critics say Russia's domestic ratings lack in-depth statistics on defaults and cover a limited number of companies, but the finance ministry argues that without the central bank's support domestic ratings cannot develop.

"No-one is calling for... a widespread decrease in capital requirements for all assets, this would lead to a too high risk accumulation," Oreshkin said. "But in cases where borrowers' low risks allow decreasing capital requirements this makes sense.".

Kremlin spokesman Dmitry Peskov declined to comment on the letter.

(editing by John Stonestreet)

By Elena Fabrichnaya and Katya Golubkova

Stocks mentioned in the article
ChangeLast1st jan.
GAZPROM PAO End-of-day quote.
GAZPROM PAO (EDR) -1.87% 6.72 Delayed Quote.51.73%
NOVATEK PAO End-of-day quote.
SEVERSTAL' PAO End-of-day quote.
TATNEFT' PAO End-of-day quote.
US DOLLAR / RUSSIAN ROUBLE (USD/RUB) 0.85% 66.4938 Delayed Quote.-4.57%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on GAZPROM PAO
08/15Putin seeks proposals on Basel III risk issue this month -economy minister
08/08Russia's top borrowers join calls to let banks use domestic ratings, central ..
08/08EXCLUSIVE : Denmark's Nord Stream 2 route request could cause eight-month delay,..
07/26Russia's Nord Stream 2 pipeline takes EU to court over new gas rules
07/26EXCLUSIVE : Russia wants short-term gas deal with Ukraine before bypass routes c..
07/26Gazprom Subsidiaries to Sell RUB139.07 Billion Stake at a Discount
07/25GAZPROM : gets bids worth $3.15 billion for sale of own shares
07/17GAZPROM PAO : Ex-dividend day for final dividend
07/10Europe should brace for U.S. tariffs on several fronts - German official
07/05GAZPROM : British court freezes Gazprom's Nord Stream dividends - Naftogaz
More news
Financials (USD)
Sales 2019 125 B
EBIT 2019 24 297 M
Net income 2019 24 430 M
Debt 2019 40 879 M
Yield 2019 7,70%
P/E ratio 2019 3,30x
P/E ratio 2020 3,76x
EV / Sales2019 0,92x
EV / Sales2020 0,93x
Capitalization 74 685 M
Duration : Period :
Gazprom PAO Technical Analysis Chart | MarketScreener
Full-screen chart
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 9
Average target price 4,13  $
Last Close Price 3,38  $
Spread / Highest target 62,8%
Spread / Average Target 22,2%
Spread / Lowest Target -20,1%
EPS Revisions
Sector and Competitors
1st jan.Capitalization (M$)
ROYAL DUTCH SHELL-2.98%219 493
TOTAL-6.38%125 123
GAZPROM PAO (EDR)51.73%75 840