FAS shall strengthen control over coal companies

The Federal Antimonopoly Service (FAS Russia) will strengthen control over cola-producing companies in the part of executing a Decree of the Government of the Russian Federation on registering off-exchange transaction (contracts)  on supplying power-generating coal*.

According to Deputy Head of FAS Anatoly Golomolzin, failure by coal companies to comply with the Decree, in particular, prevents development of a liquid price index for power-generating coal, which is a constraining factor for developing the market in general. He emphasized: “FAS intends to hold companies administratively liable for breaching the procedure on registering off-exchange transactions with coal”.

At the same time, St Petersburg International Mercantile Exchange (“SPIMEX” JSC) published recommendations on its web-site for coal companies to register off-exchange contracts on coal supplies. The Exchange also is prepared to offer consultative support on selecting an option for automated registration of off-exchange transactions with coals and provide free individual training on registering off-exchange transactions.

The next meeting on registering off-exchange transactions (contracts) with coal is scheduled on 29 August 2017 to analyze Decree execution.

* No. 623 Decree of the Government of the Russian Federation “On approving the Regulations on providing information about contracts concluded by the parties not through on-exchange trading, obligations under such contracts provide for transition of the right of property on the goods allowed for on-exchange trading, and on keeping the Register of such contracts and providing information form the Register” of 23.07.2013.