Second Event Log Template

• My chosen MNC

The company I chosen and was affected by an event is ‘Public Joint Stock Company
Gazprom’ which is one of the largest companies in world and is based in Russian Federation
and is also a wholly owned company by the Russian Government. The company operates in
the energy industry and have a lot of subsidiaries in foreign markets such as Armenia,
Austria, Cyprus, Finland, Germany, Turkey, Nigeria, UK and many others. Its main activities
include the extraction, production and supply of natural gas, petroleum, petrochemicals and
gas pipeline transport services.

• The specific current news event that has an impact on my chosen MNC

• Summarise the news below in a few lines

Western sanctions on Russia oil and gas sector.

The US and EU sanctions on Russia starting from March 2014 and still continuing, all because of
the Crimean war impacted heavily the economy not only of Russia but also many other
European countries such as Bulgaria. A set of sanctions over Russias economy could result to
many possible things to happen. Russia can become slowly isolated from Europe and that will
cause major problems in its diplomatic relations. The trade and transportation with EU nations
will be affected heavily because of embargoes. More than that Russia responded with sanctions
itself and both sides have to lose from this event.

• How does this news impact on my chosen MNC? List two possible impacts.

• Impact 1

The US sanctions may lower the revenues of Gazprom because it is constantly against it to be
the supplier of gas in Europe, which holds them with constructing the gas pipelines.
They can slow down the construction of the pipeline and adversely affect the income of the gas
giant. Due to sanctions the net revenues of Gazprom from sales to Europe and Turkey in 2019
fell by 9% comparing to previous year (FinancialTimes, 2019).
Beside of that, Gazprom hold a high financial risk because of sanctions and revenue falling may
influence their stocks that will fall in price.
pretul actiunilor

• Impact 2

The sanctions imposed to Russias economy can lead Gazprom to reduce the network supply
agreements with other countries, them being restricted and preventing the export of gas, this
will slowly squeeze Gazprom out of foreign markets. The introduction of these sanctions
measures may create risks for the implementation of the promising gas transmission projects
Turkish Stream and Nord Stream-2, which means strong potential consumers such as Germany
and Turkey.

• Proposed measures to mitigate these impacts. List two measures with explanation.

• Measure 1
 ______________Turn into other
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• Measure 2

Gazprom should focus more on Asian market by offering its gas supply services because it has very little
attribute to US and EU countries and the exports make three quarters of its revenues. Beside of that the
asian market creates new opportunities due to large populations of it. Gazprom have negotiations with
China already for 10 years for contract of gas supply which basically means for them a new huge market
that is growing fast and will give access to other countries (FinancialTimes, 2019).