OREANDA-NEWS. July 26, 2011. The Federal Antimonopoly Service (FAS Russia), the Federal Service for Environmental, Technological and Nuclear Supervision (Rostechnadzor), the Federal Agency for Technical Regulation and Metrology (Rosstandard) and 12 oil companies * signed agreements aimed, in particular, at stabilising the situation on the market of oil products, reported the press-centre of FAS Russia.

In Q4 2010 and in the first six months of 2011 the market experienced shortage of oil products, which resulted in growing prices. One of the factors behind the price growth was that some oil companies were unprepared to comply with the Technical Regulations “On Requirements to Motor and Aviation Petrol, Diesel and Marine Fuel, Fuel for Jet Engines and Residual Oil”.

To avoid reoccurrence of the problems, Technical Regulations can come into force later than initially intended, subject to fulfilling several obligations by the oil companies.

To prevent antimonopoly violations, modernize production capacities of oil companies and enhance the quality of oil products supplied to domestic market, quadripartite agreements with oil companies were concluded.

According to the agreements, oil companies undertake obligations to:

1. Modernize refineries to produce the products of better quality (by 2015);

2. From 2015 ensure sufficient production of motor fuel and domestic supply.

FAS Russia is of the opinion that these obligations intend to prevent restricting competition on the markets of oil products – particularly, reducing domestic supply and infringing consumer interests (wholesale, small wholesale and retail).

Within the scope of their respective references, FAS Russia, Rostechnadzor, Rosstandart will endeavour to control whether oil companies fulfill their obligations in accordance with the agreements. If companies fail to fulfill the obligations specified in the antimonopoly law, FAS will initiate the necessary proceedings. Investigating such cases, FAS can apply sanctions, including seizure of illegally obtained income, particularly, when oil companies failed to execute investment programmes aimed at modernizing oil refineries.

*Oil companies that entered into the agreement:

1.”LUKOIL” OJSC

2. “Gazprom Neft” OJSC

3. “TNK-BP” OJSC

4.”Rosneft” NK” OJSC

5. “Surgutneftegaz” OJSC

6. “Tatneft” OJSC

7. “Alliance” NK” OJSC

8. “Bashmeft” ANK” OJSC

9. “Slavneft” NGK” OJSC

10. “Gazprom” OJSC

11. “Rusneft” NK” OJSC

12. “NZNP” OJSC