ANATOLY GOLOMOLZIN: ON THE MAIN ASPECTS OF THE PROGRAMME IN COMMON EAEU GAS MARKET

Speaking at an International Forum, Deputy Head of FAS discussed a policy document recent adopted by Heads of EAEU member-states

Deputy Head of FAS Anatoly Golomolzin discussed development of the common gas market in EAEU. On 7 December 2018, he was among the speakers at the “GAS Russia – 2018” – the XVI International Forum.

Anatoly Golomolzin reported that on 6 2018 the Supreme Eurasian Economic Council had met in St Petersburg and Heads of EAEU member-states signed the Programmes for establishing common EAEU markets of gas, oil and oil products.

“FAS and the Ministry of Energy jointly with their colleagues from EAEU member-states became the main authors of these documents, the work on which lasted for two years after the Heads of EAEU member-states adopted the Concept of establishing the common gas market of the Eurasian Economic Union and the Concept of establishing the common oil and oil products market of the Eurasian Economic Union. The Programme for establishing the common gas market of the Eurasian Economic Union includes 68 Articles detailing all means of developing the gas market no later than the end of 2024”, started his speech Deputy Head of FAS Anatoly Golomolzin, who had taken part in the work of the St Petersburg session of EAEU Supreme Economic Council as a member of the Russian delegation (see https://fas.gov.ru/news/26550).

The Programme is devised in view of: the economic interests of the member-states (including the performance and development specifics of domestic gas markets in the member-states) and the law of the member-states; the principles of developing the common Union gas market, including the principle of priority satisfaction of domestic gas needs of the member-states; the right of the member-states to undertake necessary regulatory measures on their domestic gas markets in case of a threat to economic or energy safety of a member-state; the arrangements and international treaties of the member-states with the third states in the gas field; international experience of establishing common gas markets.

The Programme brings considerable changes to relations in the EAEU market:

“It is expected, in particular, the access to the services of infrastructure companies will be ensured, including access to gas-transportation systems and on-exchange gas trading; applying different mechanisms for concluding gas-supply contracts (long-term and short-term contracts, exchange deals) on the common Union gas market; concluding gas supply contracts on the common Union markets at market prices. These relationship will be formed in pursuance of the contacts and basic principles that exists at the moment between our countries”, explained Anatoly Golomolzin.

He emphasized: “Performance of common gas markets will be regulated under the national laws.The Programme formulates the principles of market performance, according to which national laws will be harmonized”.

According to the speaker, the gas market should be formed in three stages.

The first stage shall be completed no later than 1 January 2021. The main outcome should be methodological and organizational foundation for developing the common Union gas market.

The second stage must be finalize no later than 1 January 2022. The main outcome should be infrastructural, technological and legal foundation for the common Union gas market. At the second stage, it is necessary, in particular, ensure operations of one or several commodities exchanges in the Union, where exchange trading with gas can take place, and perform exchange gas trading, prepare an international contract.

The third stage shall be completed no later than 1 January 2025. The main outcome of the III stage must be readiness of the member-states for their gas market players participating in, particularly, creating economic conditions, enabling performance of economic conditions for performance of the common gas market of the Union