OREANDA-NEWS. October 26, 2012. The Chairman of the Government [the Prime-Minister] of the Russian Federation signed the Decree of the Government of the Russian Federation “On Approving the Criteria for Regularity and Uniformity of Selling Goods through Exchange for Certain Markets where Oil and (or) Oil Products Circulate”, reported the press-centre of FAS Russia.     

FAS devised the Decree to execute Clause 5 Part 5 Article 6 of the Federal Law “On Protection of Competition”. The Decree establishes that sellers allocate volumes of oil and (or) oil products evenly for sale through exchange by days and trading sessions. Sellers determine the volumes of oil and (or) oil products to be sold by calendar months, as well as monthly specifying volumes of sale by days and trading sessions.

Information on allocating volumes of sale of oil and (or) oil products through exchange trading shall be placed on the official seller’s web-site and forwarded to an exchange to place such information on its official web-site in the Internet information-telecommunication network.

The volume of sale of oil and (or) oil products by a seller on a trading session must be no less than the planned sale of each type of exchange commodity, except when the volume of sale is redistributed because an exchange cancels a trading session. Transactions concluded on the bases of bids addresses to a particular participant of exchange trading as well as non-standard transactions, determined under the Federal Law “On Countering Unlawful Use of Insider Information and Market Manipulation and on Introducing Changes to Some Legislative Acts of the Russian Federation”, shall not be taken into account determining the volume of sale.

The annual volume of sale of oil and (or) oil products through exchange trading must not be below the threshold that shall be established by a joint order of FAS Russia and the Ministry of Energy of the Russian Federation.

At the moment FAS is coordinating the volume the Ministry of Energy.

Reference:

Under Part 5 Article 6 of No.1235-FZ Federal Law “On Protection of Competition” of 26th July 2006, monopolistically high price shall not be recognized if fixed at the exchange, simultaneously complying with the following conditions:

1) The quantity of goods sold through the exchange, produced and (or) sold by an economic entity that has dominant position on the relevant goods market, shall be no less than the quantity set by the federal antimonopoly body and the federal executive body that regulates the field of activities, to which production of the relevant goods belongs;

2) Transactions are concluded by an economic entity, that has dominant position on the relevant goods market, in course of exchange trading, which meets the requirements determined by the federal antimonopoly body and the federal executive body that regulates the field of activities, to which production of the relevant goods belongs, in particular, the requirements for the minimum number of participants of exchange trading within a trading session;

3) An economic entity that has dominant position on the relevant goods market, accredited and (or) taking part in bidding (particularly, by filing the bids to a broker, brokers), shall submit a list of affiliated persons to the exchange according to the procedures specified by the federal antimonopoly body;

4) Actions of an economic entity that has dominant position on the relevant goods market, and (or) its affiliated persons are not market manipulations;

5) An economic entity that has dominant position on the relevant goods market shall sell goods at the exchange regularly, with even allocation of the quantity of goods for trading sessions within a calendar month. The Government of the Russian Federation has the right to determine the criteria of regularity and evenness of selling goods through an exchange for certain markets;

6) An economic entity that has dominant position on the relevant goods market shall register off-exchange transactions for supplying goods, circulated on this goods market, in the cases and according to the procedures specified by the Government of the Russian Federation;

7) The minimum size of an exchange lot does not prevent entry to the relevant goods market;

8) an economic entity, that has dominant position on the relevant goods market, sells goods at an exchange that meets the requirements of the law of the Russian Federation on organized trading, including the requirements for confidentiality of information about the persons that filed the bids, particularly, by filing the bids to a broker, brokers.