OREANDA-NEWS. December 12, 2013. The Federal Antimonopoly Service (FAS Russia) changed its determination issued to “Gazprom Neft” OJSC due to changes in the law.

In 2009 FAS found that “Gazprom Neft” OJSC violated the antimonopoly law by abusing its dominance on the market of wholesale sale of oil products (Article 10 of the Federal Law “On Protection of Competition”).

According to the determination, “Gazprom Neft” OJSC had to stop the violation and exercise a number of actions aimed at supporting competition. In particular, from 1st October 2009 the company had to sell no less than 10% of the monthly volume of oil products of “Gazprom Neft” OJSC (gasoline, diesel fuel and aviation kerosene) on domestic market, through exchange and /or electronic trading site that meet the requirements of the antimonopoly law.

On 30th April 2013 FAS and the Ministry of Energy issued a joint Order “On Approving the Minimum Quantity of Products Sold through Exchange and Requirements to Exchange Trading, through which Economic Entities that Have Dominant Position on the Relevant Markets Complete Transactions”. The Order established the following minimum quantities of oil products sold through exchange that are produced and (or) sold by economic entities that have dominant position on the relevant wholesale markets:

- Gasoline – 10%

- Diesel fuel – 5%

- Jet engine fuel - 10%

- Residual oil – 2%.

The itemization of the procedures for sales of oil products through exchange and clarification of the quantities of each types of oil products are mostly new and could not have been taken into account at the time of issuing the determination. Therefore, FAS concluded that it would be expedient to change Clause 5 of the determination in the following wording:

“5. Ensure sales of oil products through exchange that meet the requirements specified by the federal antimonopoly authority and the federal executive body regulating activities, including production of relevant goods in the quantity and the procedures established by the federal antimonopoly authority regulating the activity to which production of the relevant goods belongs”.