Gazprom shares plummeted to a historic low — At the moment, they are trading around $1 per share. In rubles, the decline is just as dramatic: starting at 360 rubles in 2008, up to 115 rubles today.

Joke of the Day: If you had invested $100 in Gazprom stock in 2008, you would now have… $1.10.

Meanwhile The dollar exchange rate on the international Forex market rose to 112 RUB. The last time the U.S. dollar rose above the 108-ruble mark against the ruble was on March 16, 2022.

Why Did Gazprom's Stock Price Fall?

The thing is, The U.S. has imposed sanctions on Gazprombank. Gazprombank is more than just a bank. Until recently, it remained the only major Russian bank not subject to U.S. sanctions and served as a “payment gateway” for the country’s entire economy. Payments for Russian gas were made through him, and it issued UnionPay cards, which became a lifeline for many Russians amid restrictions imposed by Visa and Mastercard.

Europe, the main buyer of Russian gas, is now facing payment difficulties. Experts have not yet reached a consensus on whether supplies will stop completely. Russian authorities promise to find a solution to keep trade going, but it remains unclear exactly how this will be achieved.

In addition to the risks to gas exports, sanctions against Gazprombank are already putting pressure on the Russian ruble. The dollar has risen above 109 RUB, and experts believe this is partly due to OFAC restrictions.

Gazprombank was also forced to suspend card issuance, and cards that had already been issued stopped working in many countries, including China, Turkey, and the UAE. This Unpleasant news for those who have used them for international payments.