OREANDA-NEWS. April 23, 2010. TNK-BP reports it is the first Russian company ever to sell forward contracts for jet fuel supply at the Saint-Petersburg International Mercantile Exchange. A test consignment of 1,000 tons of jet fuel was sold at the exchange to the biggest Russian air carrier, Aeroflot — Russian Airlines. The fuel is planned to be supplied in May, reported the press-centre of TNK-BP.

The forward contracts contain a fixed price and provide for fuel delivery within more than a month after the trading. The advantage of forward contracts consists in the transparent exchange pricing mechanism based on universally acknowledged Platt’s oil agency quotations and risk hedging.

“TNK-BP is committed to its strategy aimed at even more transparent operations in the Russian petroleum product market. However, TNK-BP managed to build an efficient and transparent internal pricing system which offers a tool to deliver fuel in one or more months. This allows customers managing their fuel costs in a more flexible manner. We hope that the Russian air carriers will appraise the advantages of the new mechanism which is in fact similar to the price formula trading in the domestic market”, said Alexander Gladkevich, Leader, Performance Unit Jet Fuel, TNK-BP.