SYSTEM OF NATIONAL INDICATORS OF COMMODITY MARKET IS ABLE TO ENSURE STABILITY OF PRICE FORMATION

This was announced by Maxim Shaskolsky, Head of FAS Russia, at SPIEF-23

The necessity for its creation is that quotations from foreign analysis agencies are used to calculate a number of taxes and duties now. They are gradually becoming irrelevant under current conditions, but continue to be used in some cases.

Government of the Russian Federation earlier set the tasks on the formation of the National system of price indicators on key groups of goods. FAS Russia together with the interested authorities are already carrying out this work within the framework of realization of the "road map" of stock exchange trade development. Stock exchange and over-the-counter indicators could form the basis of such a system.

For example, in the market of petroleum products, the indices published by the exchange reflect the real market situation, as they are based on trades covering 25-30 % of the total domestic market. Oil companies use such indicators as a basis for formula price formation when concluding over-the-counter long-term agreements for the supply of petroleum products.

Not all commodity markets are represented on the stock exchange now, and most of them do not meet the requirements of the liquidity. As a result, creation of liquid tenders is an important direction of joint work of FAS Russia and interested agencies. Currently, work is underway to prepare a bill that will give the Government of the Russian Federation the right to set minimum stock sales volumes for key groups of goods. This will allow to form price indicators even in markets with no dominant companies.

FAS Russia considers it possible to use indicators of over-the-counter agreements. Their representation is due to the wide range of registered contracts (petroleum products, coal, grain and mineral fertilizers). It is also important to take into account the prices and volumes of actually executed contracts, which cannot be influenced by individual companies.

Head of FAS Russia informed that the authority plans to take into account the formed indicators as part of the consideration of antitrust cases on abuse of dominant position.

An interdepartmental group to assess the commodity price indicator (index) is being established. FAS Russia together with interested federal executive authorities and the Bank of Russia has prepared a draft resolution of the Government of the Russian Federation on the procedure for appropriate interaction. Based on the results of the joint work, a decision on the approval of the appropriate methodology and the possibility of its application in taxation practices and other state policy on commodity markets will be made. 

Creation of a National system of price indicators for key groups of goods can ensure the stability of the price formation.

Besides, it will allow to solve certain issues of the taxation of Russian companies and improve its position on the market in the current circumstances.

In addition, appropriate quotations for commodities will allow to reduce the distortion and manipulation of prices to meet the interest of the internal consumer.