PILOT COAL EXCHANGE TRADING WILL BE LAUNCHED ON 20 DECEMBER

Uniform regular trading is expected to begin in Q2 2020 to develop exchange indicators

On 17 December 2019, Head of FAS Department for Regulating the Fuel-and-Industry Complex and the Chemical Industry, Dmitry Makhonin took part in the National Coal Conference in Moscow.

He reminded that FAS makes tariff decisions, particularly, based on data about the prices registered on-exchange.

“Last year when the costs of coal and fuel oil were growing, the Government set an objective to check whether the sums requested by regional budgets to compensate generation are justified. The requested sums were halved based on an analysis of comparable prices in procurement and registration of transactions by companies”, saidDmitry Makhonin.

He discussed in detail establishing an operator of exchange supplies in the basis of “Russian Railways”: “It is provided for by the law about on-exchange trading and it is now under certification by the Bank of Russia. We have already done such measures; “Transneft” and “Gazprom” have the status of exchange delivery operators, now it the turn of railways. It simplifies payments between trading parties upon the facts of acquiring goods, helps with car detention, allows sellers and buyers to trace supplies of the commodities bought through the exchange”.

He pointed out that FAS expects to launch the work of the operator in H1 2020.

“Bulk oil cargo is in the pilot project, and we are talking with representatives of mineral fertilizer companies, so they also can join”, emphasized Dmitry Makhonin and invited coal companies to be involved.

“There is nothing more important than achieving more comfortable and cost effective goods transportation”, pointed out Head of FAS Department for Regulating the Fuel-and-Industry Complex and the Chemical Industry in conclusion and invited the event participants to be involved in the work of the Exchange Committee to discuss the pressing issues in the sector.