OREANDA-NEWS. April 10, 2013. The Federal Antimonopoly Service (FAS Russia) held a meeting on devising the Rules for guaranteed non-discriminatory access to produced ethylene within a common technological complex.

The meeting was attended by representatives of the Ministry of Energy, the Ministry of Industry and Commerce, the Ministry of Economic Development and interested companies. The purpose of the meeting was to discuss whether it would be expedient to continue the work on the Rules for guaranteed non-discriminatory access to produced ethylene and refinery capacity within a common technological complex.

The goals of devising the Rules were to prevent violations of the antimonopoly law by ethylene producers supplying it to consumers via an ethylene pipeline within the common technological complex and to prevent conflicts between them.

As emphasized at the meeting, the situation on the market had changed considerably: ethylene producers and consumers concluded contracts for supplying raw materials, agreeing on the volumes of ethylene supplies and ethylene prices.

In view of the changed situation, the conference participants made a decision that it would be inexpedient to introduce an additional mechanism for compliance with the antimonopoly law on the ethylene market.

At the same time, taking into account the position of the ethylene consumers who do not have their own production capacity, regarding the problem of synchronizing capacities for ethylene production and refining, combined in the common technological complex, it was recommended to the market participants to submit to the Ministry of Energy updated information about the plans for developing ethylene production and refining capacities to achieve demand – supply balance on the market with restricted competition, that will be accounted for in the Plan for developing gas- and petrochemicals sectors in Russia for the period up to 2030, approved by No.79 Order of the Ministry of Energy of 1st March 2012.

As pointed out by Anna Mirochinenko, the Head of FAS Department for Control over Chemical Industry and Agro-Industrial Complex, “achieving the demand – supply balance on the ethylene market with a common technological complex is possible through correcting indicators of the Plan for developing gas- and petrochemical sectors in Russia for the period up to 2030. Should any disputes on ethylene supplies emerge, market participants will be able to approach the antimonopoly bodies or relevant judicial bodies to protect their interests”.

The meeting on devising the Rules for guaranteed non-discriminatory access to produced ethylene within a common technological complex took place on 29th March 2013.