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Russia: FAS drafts law on pricing crude oil

By  |  October 9, 2012

Russia’s Federal Anti-monopoly Service (FAS) released a draft law on Monday, designed to assess the fair domestic and export market price of crude oil and oil products. The proposal would use three indicators: export netback rate based on international prices at relevant markets, the over-the-counter price, and the price on exchange floors. Anatoly Golomolzin, the authority’s deputy head said in January, that these indicators would allow a fair assessment of the market price.

One of the biggest caveats of the draft is that it forbids companies that hold more than 25% in a regional fuel market, to buy, rent or engage in any other deals to control retail fuel networks. Should market players violate the regulations, the court may order them to spin off their wholesale and retail operations.

Full Content: Platts

Related Content: What Do We Really Know About Export Cartels and What is the Appropriate Solution?

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