Challenging Aspects Of The Legal Regulation Of International Economic Activities Of Gas Exporters As Parties Trade In Gas Abroad

According to the Energy Strategy of the Russian Federation until 2035, the indicator of solution of the task of a flexible response to the world gas market dynamics is retaining by the Russian Federation of the dominant position of top three world gas exporters. Russian exporting companies are interested in trading in natural gas in European exchanges, as exchange trade in natural gas gives an opportunity to diversify the existing natural gas export mechanisms, gain access to highly liquid natural gas sales channels. At present, there is little legal research dedicated to challenging aspects of the legal regulation of exchange trade in energy resources, access of exporting companies to foreign exchanges. There are gaps and discrepancies in the existing legal regulation of this sector. The author reviews peculiarities of the legal regulation of relationships arising in trade in natural gas in European exchanges, the requirements set for exchange participants, the existing restrictions of these operations for Russian exporting companies, brings forward legal regulation development proposals.

Keywords

energy law, legal regulation of energy security, legal regulation of gas export, exchange trade in natural gas, legal regulation of the access of Russian exporting companies to foreign markets

Received

06.11.2020

Publication date

05.12.2020

Number of characters

13964

Cite Download pdf

GOST	Koshman S. Challenging Aspects Of The Legal Regulation Of International Economic Activities Of Gas Exporters As Parties Trade In Gas Abroad // Energy law forum – 2020. – Issue 4 C. 111-115 [Electronic resource]. URL: https://mlcjournal.ru/S231243500022547-9-1 (circulation date: 05.05.2024). DOI: 10.18572/2410-4396-2020-4-111-115
MLA	Koshman, Sergey S "Challenging Aspects Of The Legal Regulation Of International Economic Activities Of Gas Exporters As Parties Trade In Gas Abroad." Energy law forum 4 (2020):111-115. DOI: 10.18572/2410-4396-2020-4-111-115
APA	Koshman S. (2020). Challenging Aspects Of The Legal Regulation Of International Economic Activities Of Gas Exporters As Parties Trade In Gas Abroad. Energy law forum (4), pp.111-115 DOI: 10.18572/2410-4396-2020-4-111-115


1	According to the Energy Strategy of the Russian Federation until 2035 (the “Energy Strategy”), the main aim of the development of the power industry of the Russian Federation is strengthening and retaining of the positions of the Russian Federation in the world power industry, at least up to 2035.
2	The Energy Strategy also recognizes that the indicator of solution of the task of a flexible response to the world gas market dynamics is retaining by the Russian Federation of the dominant position in the top three of the world gas exporters.
3	One of the most efficient instruments of retaining and increasing the gas market share by Russian companies in the conditions of the growing competition in the European gas market is the use of additional sales channels. One of such sales channels could be exchange trade in natural gas in European exchanges.
4	Russian exporting companies are interested in the trade in natural gas in European exchanges as exchange trade in natural gas gives an opportunity to diversify the existing natural gas export mechanisms, gain access to highly liquid natural gas sales channels.
5	There is still little legal research of the peculiarities of the legal regulation of exchange trade in energy resources. [1] The legal studies carried out in the Russian Federation review challenging aspects and tendencies of the legal regulation of exchange trade in energy resources in the Russian Federation within the framework of the Eurasian Economic Union. Studying the tendency of the legal regulation of exchange trade within the framework of the Eurasian Economic Union, V.V. Romanova pays attention to the expediency of unification of provisions on exchange trade in energy resources, requirements for exchanges, trade procedure with further breakdown of peculiarities of exchange trade in separate energy resource types and their derivatives. [2]
6	An analysis of the applicable legal regulation of the procedure for carrying out of international economic activities and the trading rules in European exchanges shows that Russian companies have some legal obstacles to take part in the trade in natural gas in European exchanges caused by the following circumstances.
7	The requirements for carrying out of international economic activities by Russian exporting companies
8	International economic activities of gas exporters are carried out pursuant to the requirements of Federal Law No. 173-ФЗ of December 10, 2003, On Foreign Exchange Regulation and Foreign Exchange Control (the “Law on Foreign Exchange Regulation”).
9	The key requirement of the Law on Foreign Exchange Regulation lies in the obligation of a resident (exporting company) to ensure credit of foreign currency revenue for the goods transferred to non-residents to its accounts with authorized banks within the terms stipulated by foreign trade contracts (Clause 1 Part 1 Article 19 of the Law on Foreign Exchange Regulation).
10	A Russian exporting company carrying out international economic activities shall register a contract with an authorized bank to be used as a basis for export of goods from the Russian Federation and make settlements under the contract only using the accounts opened with the authorized bank having registered the contract (Clause 5.1 of Instruction of the Central Bank of the Russian Federation No. 181-И of August 16, 2017, On the Procedure for Provision of Documents and Information to Authorized Banks by Residents and Non-Residents Carrying out Foreign Exchange Transactions, on Unified Foreign Exchange Transaction Accounting and Reporting Forms, Procedure for and Terms of Submission Thereof).
11	Credit institutions organized under the laws of the Russian Federation and entitled to perform bank transactions with foreign currency based on the licenses issued by the Central Bank of the Russian Federation are acknowledged authorized banks pursuant to Clause 8 Part 1 Article 1 of the Law on Foreign Exchange Regulation.
12	Thus, the laws on foreign exchange regulation and foreign exchange control set the requirements for the procedure for registration of export contracts on supply of goods by Russian residents, the obligation of an exporting company to repatriate the foreign currency revenue for the goods transferred to nonresidents and the procedure for exercising of control over receipt of foreign currency revenue.
13	The procedure for and conditions of trading in natural gas in European exchanges Russian legal entities are obligated to comply with exchange trade rules set by an exchange to take part in trading in European exchanges. The rules are universal and mandatory for all exchange trade participants.
14	The rules for participation in exchange trade are published on official websites of European exchanges. Such rules determine the trade procedure, requirements for trade participants, framework agreements concluded at an exchange, specification of the goods, etc. [3]
15	An advantage of the exchange trade in natural gas is a guarantee of discharge of the obligations of the parties in respect of concluded transactions. It is achieved by using clearing and the central counterparty model in carrying out of settlements between trading participants.

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