The Assessment of the Impact of Adverse Economic and Geopolitical Situation on the Value of Russian Oil and Gas Companies

The present article examines the value of the oil and gas companies and the influence of sectoral sanctions and negative dynamics of oil prices on it. The problem of the research is the assessment of the impact of macroeconomic and geopolitical factors on the market capitalization of Russian oil and gas companies. During the study, the main approaches to the valuation of companies and the features of the valuation of Russian oil and gas companies were outlined. Sanctions relating to oil and gas industry were considered, the consequences of their imposition and the fall of oil price were analyzed. The regression analysis was held to determine the dependence of the value of oil and gas companies on international sanctions and oil price conjuncture. The results show that in the oil sector the market capitalization directly depends on the oil price, in the gas industry this influence is absent. It was revealed that due to the low level of oil prices, sanctions do not affect the value of oil and gas companies. However, it was determined that the maintenance of these trends in the long term will cause a decline in key indicators and value of oil and gas companies. The results of this research can be useful to the management, investors, analysts to understand the relationship between macroeconomic, financial and operational indicators and the value of oil and gas companies.