Russia’s state-owned Gazprom on Tuesday said it had fully cut off supplies to Dutch trader GasTerra and would later halt gas to Denmark’s Orsted, after both companies failed to make payments in rubles for gas delivered in April.
Gazprom’s decision comes after European Union leaders agreed in principle to cut 90% of oil imports from Russia by the end of 2022 for Kremlin’s action in invading Ukraine three months ago.
Russia has already cut off gas supplies to Poland, Bulgaria, Finland, and the Netherlands in response to Western sanctions, after these nations refused to comply with Russian demands to switch to payment in rubles.
KTBST Securities believes that Russia’s Gazprom cutting supplies to the Netherlands and Denmark will raise energy prices such as coal and crude, further tightening the European gas market.
Therefore, KTBST recommends Banpu Pcl. (SET: BANPU) with a target price of THB16.00 and PTT Exploration and Production Pcl. (SET: PTTEP) with a target price of THB170.00.