Dmitry Makhonin: FAS plans to launch exchange trading with mineral fertilizers by the end of 2017

23-08-2017 | 10:14

Currently, oil products, natural gas, liquefied hydrocarbon gas, timber and agricultural products are sold through the exchange

For several years FAS has been developing commodities exchange trading to form transparent market price indicators.

In the opinion of the antimonopoly body, mineral fertilizers should become potential commodity for exchange trading. To this purpose, an Action Plan is drafted and signed by the Exchange Committee, formed with the Bank of Russia and the Federal Tax Service, to launch trading with mineral fertilizers at the “Mineral raw materials and chemical products” Section of “SPIMEX” JSC.

The Road Map will be implemented by the Ministry of Agriculture, the Ministry of Industry and Trade, the Ministry of Finances, the Russian Association of Fertilizer Producers, fertilizer producers (including “EvroKhim” Mineral and Chemical Company” JSC, “URALKHIM” Integrated Chemical Company”JSC, “Azot” JSC, “Tolyattiazot” Corporation” CJSC, “FosAgro-Cherepovets” JSC, “KuibyshevAzot” PJSC, “Acron” PJSC, “Gazprom Neftekhim Salavat” OJSC, “Mendeleevskazot” Ltd., “Ammonii” JSC” and other market players.

The Road Map provides for launching trading with carbamide for agricultural needs with further expansion to other types of mineral fertilizers.

The Road Map also require improvement of regulatory framework, training sessions for trading participants, and devising methods for calculating indices of exchange and off-exchange prices for mineral fertilizers in Russia.

Head of FAS Department for Regulating Fuel-and-Energy Sector Dmitry Makhonin emphasized: “Active work on organizing exchange trading with mineral fertilizers is already in place. We expect to launch trading in line with the signed Road Map by the end of 2017”.