OREANDA-NEWS. June 24, 2013. The Ministry of Justice of the Russian Federation registered No.313/13/225 joint Order of FAS and the Ministry of Energy “On Approving the Minimum Amount of Oil Products Sold through Exchange and the Requirements to Exchange Trading in the Course of Which an Economic Entity that Has Dominant Position on the Relevant Goods Markets Concludes Transactions with Oil Products” of 30th April 2013.

The joint Order of FAS and the Ministry of Energy is devised to enforce Clauses 1 and 2 Part 5 Article 6 of No.235-FZ Federal Law “On Protection of Competition” of 26th July 2006. The Order completes the process of establishing regulatory framework for the relevant goods markets where oil products circulate, under Part 5 Article 6 of Federal Law “On Protection of Competition”, which determines the conditions when the price formed through exchange trading shall not be recognized monopolistically high.

Earlier, to enforce the above norms of the Law, Russia adopted the Procedures for submitting a list of affiliating persons by an economic entity that has dominant position on the relevant market, accredited and (or) taking part in trading (particularly by filingв applications for taking part in trading to a broker, brokers approved by No.409. Order of FAS Russia of 26th June 2012. To the same purpose Russia adopted the Criteria of regularity and evenness of selling goods through exchange for particular markets where oil and (or) oil products circulate, approved by No.1035 Decree of the Government of the Russian Federation of 11th October 2012.

Reference:

5. Under Part 5 Article 6 of No.235-FZ Federal Law “On Protection of Competition”, 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) deals 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 distribution 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 at the exchange for certain goods 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 organised trading, including the requirements for confidentiality of information about the persons that filed the bids, particularly, by filing the bids to a broker, brokers.