Problems and Tasks of Legal Regulation of Exchange Trade in Energy Resources in the Russian Federation and in the Eurasian Economic Union

In accordance with the National Plan on the Development of Competition, development of exchange trade is referred to the fundamental principles of the national policy of the Russian Federation in this sector. In the implementation of the National Plan on the Development of Competition, the expected results include, without limitation, an increase in the sales of natural gas at the organized tenders; in the field of oil and oil products, it is planned to develop market pricing mechanisms through development of organized trade in oil for export and formation of a benchmark for Russian oil, and development of the terminal market of oil products.

In the Russian Federation, exchange trade in oil, oil products, and gas is currently performed at JointStock Company Saint-Petersburg International Mercantile Exchange, Joint-Stock Company Saint-Petersburg Stock Exchange, futures contracts for oil are traded at the Moscow Stock Exchange, and exchange trade in certain oil products and liquefied hydrocarbon gases is also carried out at Joint-Stock Company Crimean Stock Exchange. The most active exchange trade in energy resources in the Russian Federation is performed at SPIMEX, JSC.

Taking into account that there are currently few legal studies on the legal regulation of exchange trade in energy resources, and considering the tasks set by the National Plan on the Development of Competition, it seems relevant to conduct a legal analysis of the current state of legal regulation in the Russian Federation, the legal framework for development of exchange trade within the Eurasian Economic Union, and to identify gaps and contradictions. In the performed study, the author examines the general requirements to the organization and conduct of exchange trade established at the level of national legislative and subordinate regulatory legal acts, performs a legal analysis of the acts of SPIMEX, JSC, as related to organizing, regulating, and controlling the exchange trade in oil, oil products, and natural gas, provisions of the Eurasian Economic Union Treaty on formation of common energy markets, Concepts and Programs for the formation of a common electricity market, a common gas market, and common markets of oil and oil products. The work proposes a conditional classification of exchange contracts for trade in energy resources, identifies gaps and contradictions in legal regulation, and suggests possible solutions for their elimination. This work may be useful for further legal research, in the implementation of law-making work, and in the educational process on energy law.

Keywords

energy law; legal regulation of exchange trade in energy resources, contractual regulation in the energy sector, energy supply, oil futures

Received

09.01.2019

Publication date

01.03.2019

Number of characters

23289

Cite Download pdf

GOST	Romanova V. Problems and Tasks of Legal Regulation of Exchange Trade in Energy Resources in the Russian Federation and in the Eurasian Economic Union // Energy law forum – 2019. – Issue 1 C. 65-71 [Electronic resource]. URL: https://mlcjournal.ru/S231243500022024-4-1 (circulation date: 19.04.2024). DOI: 10.18572/2410-4396-2019-1-65-71
MLA	Romanova, Viktoria V "Problems and Tasks of Legal Regulation of Exchange Trade in Energy Resources in the Russian Federation and in the Eurasian Economic Union." Energy law forum 1 (2019):65-71. DOI: 10.18572/2410-4396-2019-1-65-71
APA	Romanova V. (2019). Problems and Tasks of Legal Regulation of Exchange Trade in Energy Resources in the Russian Federation and in the Eurasian Economic Union. Energy law forum (1), pp.65-71 DOI: 10.18572/2410-4396-2019-1-65-71


1	Development of exchange trade is referred to the fundamental principles of the national policy of the Russian Federation on the development of competition. In accordance with the National Plan on the Development of Competition, it is planned to systematically develop organized trade in the commodity markets, to identify mechanisms for formation of key commodity items, to establish market prices for relevant groups of goods, to encourage and attract business entities to participate in exchange trade, and to use the potential of smalland mediumsized entities to develop the organized trade [1].
2	Pursuant to the National Plan on the Development of Competition in the Russian Federation, the expected results of development of competition in the gas supply sector include transition to market pricing through formation of exchange and over-the-counter indicators of prices for natural gas ensured, among other things, by an increase in the sales of natural gas at the organized tenders; in the field of oil and oil products, it is planned to develop market pricing mechanisms through development of organized trade in oil for export and formation of a benchmark for Russian oil, development of the terminal market of oil products, development of organized small-scale wholesale trade and formation of market price indicators for the smallscale wholesale market, deregulation of prices for transportation of oil products through trunk pipelines of oil products that provide for maintaining the scope of organized trade in oil products at the level exceeding 10 percent of supplies to the domestic market, and increase in the scope of the settled export transactions in oil [2].
3	In the Russian Federation, exchange trade in oil, oil products, and gas is currently performed at Joint-Stock Company Saint-Petersburg International Mercantile Exchange, Joint-Stock Company Saint-Petersburg Stock Exchange, futures contracts for oil are traded at the Moscow Stock Exchange, and exchange trade in certain oil products and liquefied hydrocarbon gases is also carried out at Joint-Stock Company Crimean Stock Exchange. The most active exchange trade in energy resources in the Russian Federation is performed at SPIMEX, JSC.
4	Legal analysis of the provisions determining the status of a mercantile exchange shows that the stock exchange performs several basic functions: organizational, regulatory, and supervising.
5	General requirements to the procedure for holding exchange trade are established in the following regulatory legal acts: Federal Law No. 325-ФЗ dated November 21, 2011, On Organized Trading, Federal Law No. 7-ФЗ dated February 7, 2011, On Clearing, Clearing Activities, and the Central Counterparty, Federal Law No. 135-ФЗ dated July 26, 2006, On Protection of Competition, Federal Law No. 224-ФЗ dated July 27, 2010, On Countering the Illegal Use of Insider Information and Market Manipulation, and on Amending Certain Legislative Acts of the Russian Federation, subordinate regulatory legal acts, Resolutions of the Government of the Russian Federation, the Provisions of the Central Bank of Russia No. 437-П dated October 17, 2014, On Activities for the Organized Trading, and acts of the stock exchanges. Herewith, it should be noted that the acts of the stock exchanges include both general exchange rules and rules for exchange trade in certain types of energy resources or their derivatives. Legal regulation of the procedure for exchange trade in energy resources at the level of acts of stock exchanges is most fully developed by SPIMEX, JSC.
6	It refers both to the general exchange rules of this stock exchange, including the requirements to the procedure for admission to trading, requirements for the bidders as well as the provisions on contractual regulation. Despite the fact that these provisions can be further improved, a certain system of contractual regulation of energy resources has already been formed. It is also worth mentioning the considerable work done in order to mitigate the legal risks arising from trading at the stock exchange in the specified energy resources and their derivates.
7	The legal analysis of the provisions of the laws of the Russian Federation and the acts of SPIMEX, JSC, where exchange trade in energy resources and their derivatives is most active, shows that the contractual regulation of exchange trade includes several groups of contracts. 1. Organizational contracts concluded between the bidders and the Stock Exchange, and between the bidders and the clearing entity.
8	These contracts pertain to a number of terms and conditions to be met in order to be admitted to trading, and they include the following types of contracts.
9	1.1. Organizational contracts between the bidders and the Stock Exchange:
10	1.1.1. Contract for Rendering of Services Related to Holding of Organized Trading;
11	1.1.2. Contract for Rendering of Services of Providing the Bidder with Software and/or Hardware for Remote Access to the Services of the Stock Exchange.

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1. 1–2. Decree of the Russian President No. 618 dated November 21, 2017 On Basic Directions of the National Policy on the Development of Competition // Official Internet portal of legal information http://www.pravo.gov.ru, December 22, 2017

2. Procedure for Admission to Trading in the Natural Gas Section of SPIMEX, JSC // http://spimex.com/markets/gas/get- access/

3. Procedure for Admission to Trading in the Oil products Section of SPIMEX, JSC // http://spimex.com/markets/oil_ products/get-access/

4. Rules for Admission to Organized Trading at SPIMEX, JSC // http://spimex.com/upload/iblock/cf2/cf22804a3ec6d- 34401d2e83ae9dcc973.pdf

5. Rules for Holding of Organized Trading in the Oil products Section of SPIMEX, JSC //http://spimex.com/upload/ iblock/e7a/e7a3cd3131020b5afd2fd52238eaeddf.pdf

6. Rules for Holding of Organized Trading in the Oil Section of SPIMEX, JSC // http://spimex.com/upload/iblock/e7f/ e7fdaaab1ddf61436d483b08ab838090.pdf

7. Rules for Holding of Organized Trading in the Natural Gas Section of SPIMEX, JSC // http://spimex.com/upload/ibloc k/1ce/1ce40f02515b214b73b9d0585e5c7370.pdf