ABOUT CHANGING CRITERIA OF REGULATIRY OF EVENNESS OF SELLING GOODS THROUGH EXCHANGE

 On 29 November 2019, Chairman of the Government of the Russian Federation Dmitry Medvedev signed a Governmental Decree “On amendments to № 1035 Decree of the Government of the Russian Federation of 11 October 2012”.

“Oil and petrochemicals were the main traded goods at the stage of establishing exchange trading, and the criteria of regularity and evenness were set to ensure market conditions of exchange trade with these physical goods. Now the criteria of regularity and evenness will apply not only to oil and petrochemicals, but also to all other types of goods traded on the exchange.

In December 2017 the President of the Russian Federation approved the National Competition Development Plan that determines development of exchange trade as one of the most important areas of the state competition policy. Systemic efforts are undertaken through the Exchange Committee founded by the Bank of Russia, FAS, the Federal Tax Service with involvement of the Ministry of Industry and Commerce, the Ministry of Energy, the Ministry of Agriculture and Federal Customs Service of the Russian Federation and around 500 entities – organizers and participants of competitive bidding. Every year the Committee holds about approximately 250 sessions of its various sectoral or thematic Sub-Committees”, said Chairman of the Exchange Committee, Deputy Head of FAS Anatoly Golomolzin.

He pointed out that “exchange trade in Russia is consistently developing. Commodities traded through the exchange along oil and petrochemicals include natural gas, liquefied hydrocarbon gases, scrap of ferrous and non-ferrous metals, mineral fertilizers, agricultural products (including sugar, grain), timber and wood products, products of chemistry and petro-chemistry, amber. Exchanges publish over 400 exchange quotations on a regular basis and indices of off-exchange prices for exchange good and indices of comparable world prices for these goods. In the near future, a list of exchange –traded goods will be expanded, particular, coal, construction, materials, precious drugs, railway freight services, meat, biological resources, etc.”

“The requirements on regular and evenly sale of goods through the exchange along with sufficiency of the traded volumes allow to form conditions of marketable exchange trade, facilitating, therefore, the conditions for objective market pricing, in which sellers and buyers of exchange commodities, participants of the physical markets and derivatives as well as the authorities are equally interested”, emphasized Anatoly Golomolzin.

The document is drafted by the Federal Antimonopoly Service to execute the Federal Law “On Protection of Competition”, Order of the President of Russia № 618 on the main directions of the state competition policy and the Action Plan for systemic development of exchange trade on commodities markets, establishing market prices for the key groups of goods, and attracting economic entities to exchange trade.