Gazprom (GAZP.RS) could lose $2.8B on the Ukrainian gas deal in 1Q '09, as trading margins from the purchase of Central Asian gas and its resale to Ukraine will halve along with a reduction in gas trading volumes, Goldman Sachs says.
Expects a lack of flexibility in the purchase contracts with Central Asian countries used to supply gas to Ukraine will result in Gazprom being forced to maintain purchase volumes of the gas and cut production of own gas. Keeps at buy. Increases target price to $8.40 from $8. Shares unchanged at $3.3. (JGP)