FAS: DRAFT LAW ON SALES STANDARDS ON-EXCHANGE UP TO 25% WILL ACCELERATE FORMATION OF NATIONAL INDICATORS

For further implementation of the draft law, the authority has already developed a draft methodology on formation of national indicators

It was announced at the Russian Energy Week by Vitaly Korolev, Deputy Head of FAS Russia.

He also added that the draft law* of the Ministry of Finance of Russia will allow to expand the range of goods** and increase their liquidity.

For goods that are currently sold on-exchange, for example, petroleum products, procedure for determining the standards will be still the same.

When creating national indicators, FAS Russia will use data from exchange trade and OTC contracts.

This is the most relevant way to determine market prices in the commodity market.

Vitaly Korolev spoke about the prospects for development of gas exchange trading. Now a working group has been established to develop amendments to the Law on Gas Supply.

Besides, the authority is currently developing measures to create economic incentives for gas producers, which will significantly increase its supply to the exchange. In particular, the introduction of a mechanism that provides for the regular supply of energy resources to organized auctions, as well as the introduction of the possibility of secondary resale of excess gas (balancing). It will allow to increase the liquidity of exchange trading, which will form market indicators of the price of this energy resource.

Proposals for the development of the gas market will be shortly sent to the Government of the Russian Federation.

For reference:

* Draft law on amendments to the Federal Law "On Organized Auctions"

** 25 % of the volume of the economic entity’s production, the list may include products of the petrochemical industry, agro-industrial complex, ferrous and non-ferrous metallurgy