DMITRY MAKHONIN: THE CURRENT MECHANISMS OF INTRODUCING AND CALCULATING DUTIES DO NOT AND WILL NOT WORK

Head of FAS Department for Regulating the Fuel-and-Energy Complex and the Chemical Industry was a speaker at a conference on the prospects of the liquefied hydrocarbon gas market in Russia

The conference was part of the VIII Petersburg International Gas Forum.

In his report on antimonopoly regulation of the liquefied hydrocarbon gas market, Dmitry Makhonin discussed market configuration and the mechanism of regulating it by the Antimonopoly Service.

“In terms of control over production, export, supplies to the domestic market, this year is characterized by increased production of liquefied hydrocarbon gases(it a year-on-year trend), increased export supplies and supplies to the domestic market. The volumes and sales registered by the Dispatching Control Centre of the Fuel-and-Energy Complex on the domestic market are rather stable and we have not registered any shortage on the market”, explained Head of FAS Department.

Dmitry Makhonin pointed out at the growth trend, improved structure of exchange trading volumes and positive dynamics. He stated that September was a record month for sales on SPIMEX, which is indicative of the prospects of developing exchange trading.

“This year marks increasing exchange treading, around 30% + on the main SPIMEX platform. The average transactions decreases, which indicates goods accessibility, a growing number of buyers and transactions executed through the Exchange”, stated Head of FAS Department for Regulating the Fuel-and-Energy Complex.

The speaker also did not leave out the difficulties experienced by the liquefied hydrocarbon gas markets.

“We constantly monitor the trends on the liquefied hydrocarbon gas markets associated with the price growth this year. Recently, a trend has emerged for stabilization and adjustment towards reducing the wholesale price. For more efficient influence upon price spikes, the system of setting and applying export customs duties must be adjusted. FAS has already put forward a relevant initiative to the Government of the Russian Federation”, explained Head of FAS Department for Regulating the Fuel-and-Energy Complex Dmitry Makhonin.

“Other interesting and important issues for discussion are negative excises, introduction of compensation mechanisms”, explained the speaker.

Summing up this report, Dmitry Makhonin added:

“We must complete the work on increasing liquidity at exchange trading, and solve the issues with the dominant companies that abuse their market dominance and create discriminatory conditions. FAS has already made decisions on those companies and they are at Courts”.