The Methodological Council of the FAS Russia focuses on the following economic issues:
- economic research;
- consideration of drafts of methodological recommendations on implementation of legislation, elaborated by structural units of the FAS Central Office and the FAS Regional Offices;
- request of economic information from external parties;
- summarization of enforcement practice, provision of methodological support to the FAS Russia’s officers;
- consideration of the annual Report on State of Competition in the Russian Federation.
Experts of the FAS Russia in the field of economics, heads of Departments of the FAS Central Office, officials of the FAS Regional Offices participate in the Methodological Council. The Council may invite members of the Public Advisory Council and expert councils, established under the FAS Russia, representatives of federal executive authorities, executive authorities of subjects of the Russian Federation to its meetings, engage with business alliances, nonprofit institutions, non-governmental and scientific organizations.
The Head of the Methodological Council of the FAS Russia is Andrey Tsyganov, the Deputy Head of the FAS Russia.
The Exchange Committee of the FAS Russia was created in the beginning of 2015, on the basis of which measures aimed at development of well-coordinated trading process are discussed.
Participants of the Committee’s sessions analyze current situation on commodity markets, take measures aimed at development and improvement of exchange trade, provide market participants with recommendations with regard to prevention of possible violations of antimonopoly legislation. These participants are regulatory bodies, interested market participants, operators of on-exchange trading, infrastructure and expert organizations on improvement of legal mechanism of exchange trade organization.
Due to necessity of further development and improvement of exchange trade and prompt solution of emerging issues, on the initiative of the FAS Russia, the following sub-committees and project working groups of the Exchange Committee were created:
- sub-committee on launch on Russian stock exchange and development of trade of deliverable stock contracts for the export of oil products;
- sub-committee on development of timber on-exchange trading;
- sub-committee on development of mineral fertilizers on-exchange trading;
- sub-committee on development of food product on-exchange trading;
- sub-committee on organization of movement of regular freight trains with oil products purchased on stock exchange and on registration of rates on railway freight provision, costs of rail transportation of freight;
- project working group on adoption of a unified position on issues related to payments for services of transportation by lines of common and uncommon usage, as well as other to cases that are not specifically prescribed by the law and that carry disruption of economic activity of oil products market participants;
- project working group on establishment of proposals related to improvement of provisions of the joint order of the FAS Russia and the Russian Ministry of Energy 12.01.2015 No. 3/15/3;
- project working group on legal and regulatory consolidation related to stockpiling and drain of oil products reserves, as well as to taking oil refinery out of services for repair.
Starting from 2013, volumes of oil products exchange trading of oil shipments to the domestic market of the Russian Federation grew by 20%, in 2016 it amounted to 17.2 tons in physical terms (+8% compared to 2015) and 555.5 billion roubles in financial terms (+12% compared to 2015). Herewith, the number of exchange trading participants in the ‘Oil products’ section at the St. Petersburg exchange was over 1650. Moreover, during 2016, there were off-exchange transactions on sale of oil products of 252.8 million tons listed on stock exchange (+51% compared to 2015).
Over the last few years, through measures taken by the FAS Russia, including those taken within the framework of the Exchange Committee, retail prices of oil products are changing with pace similar to pace of inflation, emerging issues are being resolved expeditiously, all necessary measures to prevent problems are being taken, which in turn has a positive impact on further development and improvement of the Russian market of oil and oil products.
Methodological Council on Tariff Regulation
Since 2015, the FAS Russia carries out government control over prices (tariffs) of commodities (services) that are subject to tariff regulation.
In order to systematize work to regulate tariffs, in 2015, the Methodological Council on Tariffs Regulation was established under the FAS Russia.
- considers draft laws and regulations, best practices related to determination of prices (tariffs) and (or) their ceiling in the sphere of activity of natural monopolies and other regulated organizations;
- develops unified approaches to tariff regulation related issues;
- drafts proposals on the main governmental policy lines in regulated sectors with regard to tariffs,
- drafts proposals on how to increase flexibility of tariffs policy and deregulate tariffs in view of competition development conditions on the regulated and adjacent markets.
Sessions of the Council concern draft laws and regulations related to tariff regulation in the field of oil and oil products transportation, the procedure for consideration of issues concerning introduction, change or termination of regulation of natural monopolies’ activity, guidance on distinction of antimonopoly and tariff legislation.
Sessions of the Council are attended by representatives of the federal executive authorities, authorities of subject of the Russian Federation, natural monopolies, scientific organizations, representatives of business alliances and non-governmental organizations.
The work of the Council is aimed at realization of tariff policy with regard to procompetitive principals of tariff regulation:
• rejection of the “cost-plus” principle, implementation of the “inflation-minus” principle and transition to market indexes;
• decision-making on introduction, change and termination of regulation on the basis of market analysis;
• launch of long-term tariff policy (with regard to infrastructure lifecycle and future-oriented market changes).
In 2015, for instance, tariffs rose with pace lower to pace of inflation; in 2016, the “inflation-minus” principle was continued to be used.
Public Advisory Council
The Public Advisory Council operates under the FAS Russia and comprises representatives of the most influential non-governmental organizations and business associations. The Council monitors activity of the FAS Russia, develops recommendations on improvement of antimonopoly legislation and practices of restraint of violation of this legislation. Similar councils operate under the FAS Russia’s Regional Offices.
Expert councils on development of competition in key markets operate under the FAS Russia. It composed of market participants, representatives of non-profit partnerships and regulatory bodies. Such practice permits the FAS Russia to evaluate objectively the situation on the relevant markets; it also improves the transparency of decisions taken by the Authority. For example:
Expert Council on Development of Competition in Oil and Oil Products Markets
The FAS Russia’s Expert Council on Development of Competition in Oil and Oil Products Markets (hereafter – the Expert Council) was established in 2009 to improve effectiveness of governmental control over compliance with the Russian antimonopoly legislation, consider issues and draft proposals aimed at development of competition in oil and oil products markets, as well as in adjacent markets, including transportation of the above mentioned commodities.
The Expert Council is an advisory body under the Federal Antimonopoly Service. Sessions of the Expert Council are attended by representatives of the federal executive authorities, authorities of subject of the Russian Federation, participants of oil and oil products markets, scientific organizations, representatives of business alliances and non-governmental organizations, infrastructural organizations, on-exchange trading operators, information and analytical agencies, as well as independent experts.
In 2016, for instance, the Expert Council’s session considered the organization of small-scale wholesale procurement of motor fuel through exchange trading, as well as the usage of indexes in assessment of a lot’s initial (maximum) price, in competitive procurement by governmental companies, infrastructural organizations and natural monopolies. In this regard, the FAS Russia jointly with multiple stakeholders is working to:
- increase liquidity of small-scale wholesale exchange trading of oil products;
- create small-scale wholesale exchange/off-exchange price indexes;
- develop the CCP;
- develop small-scale wholesale exchange trading of oil products through the Operator of goods supply;
- develop “swap” goods exchange operations;
- improve small-scale wholesale exchange trading of oil products through access to services of storage at oil warehouses.