Anatoly Golomolzin: “URALS crude will be quoted right on other crudes”

On 5 October 2017 Deputy Head of FAS Anatoly Golomolzin took part in “Russian Energy Week 2017”

The Forum included the Round Table on “Developing exchange trading with Russian oil” that discussed the prospects of advancing exchange trade with URALS crude and establishing new reference price based on the scope of production and oil products quality.

Anatoly Golomolzin emphasized the importance of establishing representative spot goods quotations, including oil, and based on them – derivatives quotations. “The quotations that are now used in trading on the domestic and world markets cause questions form foreign antimonopoly bodies and financial regulators. Russia here applies the best law and the best practice”, said Deputy Head of FAS.

“Three price indicators are formed: exchange quotations, off-exchange quotations and indicators of prices of comparable markets. These indicators are reliable, transparent and reflect the real trading practice. We are moving along the same avenue to form the benchmark on the oil market”, mentioned Anatoly Golomolzin.

The efforts to form the benchmark for Russian export oil (currently - URALS, in the prospect – ESPO) are supported at the highest level and are undertaken following the decision of the Presidential Commission on Fuel-and-Energy Complex. The work is approved by the CIS Council of the Heads of Governments. Also Heads of EAEU states approved the concept of the common market of oil and oil products, and drafting the Programme for shaping the market is at the final stage. It is expected that SPIMEX and Shanghai Petroleum and Natural Gas Exchange will sign a relevant Agreement.

Summing up, Anatoly Golomolzin pointed out: “We are developing this direction and the trends that we have makes us confident that the project will be successful. Soon we will form the actual price indicators on the market and URALS crude will be the generally accepted reference indicator along with other crudes”.