FAS PROPOSES TO OBLIGE EXPORTERS OF GRAIN AND SUNFLOWER OIL TO PROVIDE ADDITIONAL INFORMATION ON OVER-THE-COUNTER TRANSACTIONS

According to the draft resolution of the Government of the Russian Federation developed by FAS, Russian exporters of grain, sunflower oil and meal will have to provide the exchange with information about the interdependence or affiliation of the supplier and the buyer during the conclusion of export OTC contracts.

In addition, such requirements may be extended to exporters of wheat, meslin, barley, corn, mineral fertilizers containing phosphorus, nitrogen or potassium compounds.

FAS proposes to oblige Russian exporters of sunflower meal to provide the exchange with information about the person who concluded an over-the-counter contract, about the manufacturer and buyer of the goods, about the quantity of the goods and its price, as well as the method of transportation when concluding over-the-counter contracts for this product.

The proposed changes will allow the formation of over-the-counter price indicators on the sunflower meal market, as well as more correct price indicators on the markets of white crystalline sugar, wheat, meslin, barley, corn, mineral fertilizers containing phosphorus, nitrogen or potassium compounds and sunflower oil.

According to the Authority, the formation of correct over-the-counter indicators in these markets will contribute to the development of market pricing.

Besides, over-the-counter indicators on the sunflower meal market can be used to calculate the floating rate of export customs duty.

For reference:

*The relevant draft decree of the Government of the Russian Federation is posted on the portal of regulatory legal acts