FAS: PRODUCERS AND EXPORTERS OF SUNFLOWER MEAL ARE REQUIRED TO PROVIDE INFORMATION ON OVER-THE-COUNTER CONTRACTS

The obligation has come from September 1, 2023 in connection with the adoption of the Resolution of the Government of the Russian Federation No. 892 prepared by FAS Russia

Sunflower meal is one of the key components of feed for farm animals and poultry.

Market participants will provide information on over-the-counter contracts under the conditions of its export in the amount of at least 20 tons.

When selling to the domestic market – if its production by a group of persons of the manufacturer for the previous year amounted to more than 10 thousand tons and with a transaction volume of at least 20 tons.

For failure to provide information on over-the-counter transactions to the exchange, market participants are subject to administrative liability in accordance with the Part 6 of the Article 14.24 of the Administrative Code of the Russian Federation.

Besides, the resolution of the Government of the Russian Federation expanded the information provided to the exchange by including information on the interdependence and affiliation of the supplier of these goods and their foreign counterparties. This applies to wheat and meslin, barley and corn, mineral fertilizers, sunflower oil and sunflower meal, which are sold for export.

According to FAS Russia, these changes will allow to expand the list of goods for which it is possible to form over-the-counter price indices, as well as to obtain more correct information for their calculation and determination of the indicator.

It should be noted that for certain goods (cereals, sunflower oil, sunflower meal), in accordance with the decisions of the Government of the Russian Federation, price indicators formed on the basis of information on over-the-counter contracts provided to the exchange are used or will be used to calculate export customs duties.

In addition, these indicators can become the basis for launching trades in settlement futures contracts, which will enable participants in the relevant markets to hedge their price risks when concluding contracts.