OREANDA-NEWS. April 22, 2014. Deputy Head of the Federal Antimonopoly Service (FAS Russia), Anatoly Golomolzin, addressed the Economic Commission at the CIS Economic Council with a report on the state of competition and pricing on oil and oil products markets.

The issue was introduced for consideration to the Economic Commission by the Interstate Council on Antimonopoly Policy (ISAP) with involvement of CIS Executive Council.

The Report “On the State of Competition and Pricing on Oil and Oil Products Markets” is prepared on the findings of the survey completed in 2012-2013 by the International Working Group on oil and oil products and methods of their functioning, formed upon an initiative of FAS Russia and Austria’s Federal Competition Authority in 2011.

Antimonopoly bodies from over 17 countries and three continents took part in the Working Group, including the Agency of the Republic of Kazakhstan and the antimonopoly authority of Ukraine as well as Bulgaria, Hungary, Germany, Latvia, Portugal, Romania, Serbia the USA and other countries. Representatives of some CIS member-states, including Azerbaijan, Armenia and Tajikistan, were actively engaged in discussing and drafting the Report.

The Report reflects the findings of a pricing survey on the markets of oil and oil products, some aspects of independence of pricing institutions, transparency and substantiation of evaluation methods and procedures, and gives recommendations for developing competition on these markets.

The Report also marks efficiency of automated systems for collecting and processing information. Anatoly Golomolzin emphasized that “based on the monitoring, information about the level of oil products price movement becomes available to consumers and government agencies. The monitoring results are used by the antimonopoly bodies to make decisions on antimonopoly cases on the markets of oil and oil products”.

The Report analyses the prospects of developing exchange trading with physical oil and oil products and commodity derivatives. “Exchange trade and registration (reporting) of off-exchange contracts is the basis for developing market pricing”, said Anatoly Golomolzin. “Developing the market of oil and oil products and improving regulation, exchange trading deserves special attention. In FAS opinion, strengthening cooperation between the antimonopoly bodies and financial regulators, as well as creating a centre for trading physical commodities and derivative financial instruments can have a positive impact upon the economy of CIS member-states”.

Summing up the Report, Anatoly Golomolzin pointed out that due to importance and economic significance of pricing issues in the sectors of oil and oil products for the economy of the CIS member-states, it is necessary to continue the efforts on developing exchange trading and market pricing on these markets.

Members of the Economic Commission highly praised the results of the efforts of the Working Group, so the Report was approved and will be presented for consideration to CIS Economic Council and the Council of the Heads of Government.