d-largest company by market value after its chairman, Dmitry Medvedev, became Russia's president. State-run Gazprom, the world's biggest gas producer, rose 6 percent in Moscow Thursday, pushing its value to 8.28 trillion rubles (US$347.4 billion). China Mobile Ltd., which has more users than the U.S. has people, declined 1 percent to HK$2.63 trillion (US$337.3 billion). Gazprom overtook GE Wednesday after the Fairfield, Connecticut-based company fell 1.3 percent to US$325 billion in New York.
Medvedev may continue dismantling domestic price caps for natural gas designed to contain inflation and reduce costs for households and industry. The government has said it wants to increase prices so that sales in Russia are as profitable as European exports by 2011. Russia, supplier of a quarter of Europe's gas, is the world's second-biggest gas consumer.
"A Medvedev presidency is the perfect political cover for Gazprom," said James Fenkner, principal of Moscow's Red Star Asset Management LP, which manages about US$100 million, including Gazprom shares. "He's going to help push through domestic price increases for gas, and that will be the next great positive catalyst for this company."
During Medvedev's six-year tenure as chairman, Gazprom's value climbed more than 32-fold as fuel prices rose and the company gained oil, electricity and coal assets.
Gazprom's expansion, including buying OAO Sibneft from billionaire Roman Abramovich in 2005, helped Russia's government increase its control over national oil production to more than a third from about 6 percent at the start of Vladimir Putin's first presidential term in 2000.
Gazprom shares rose 4.3 percent Wednesday after Medvedev, 42, was sworn in as Russia's third and youngest president, and nominated Putin, 55, to be his prime minister. Medvedev will quit as Gazprom's chairman next month after a new board is elected, spokesman Sergei Kupriyanov said.
