FAS proposed to allow Transneft not to disclose information until July 2024

The Federal Antimonopoly Service (FAS) of Russia has prepared a draft government decree that will change the procedure and terms for disclosing information for natural monopolies involved in the transportation of oil and oil products, informed “Interfax” with reference to the documents of the service.

If adopted, the resolution will enter into force on March 1, 2023 and will limit the timing and procedure for disclosure for Transneft until July 1, 2024. It is assumed that the company’s reporting for the period from 2018 to 2023 will be withdrawn from public access. clarifies that information will be provided at the request of interested parties, subject to confidentiality.

The document says that the restrictions are being introduced in order to reduce the dissemination of data that could increase sanctions pressure on the fuel and energy sector. “The purpose of the proposed regulation is to minimize the risks of increasing sanctions pressure on consumers of services for the transportation of oil and oil products,” the document says.

According to the authors of the document, due to the disclosure of information in the public domain, sanctions pressure may also be exerted on Transneft’s counterparties – shippers and consignees, ports, suppliers and contractors, which may affect the export of hydrocarbons, sales markets and lead to limited access to financial documents.

“The present procedure for disclosing information by a natural monopoly entity on routes for the transportation of oil and petroleum products, on the construction, reconstruction or overhaul of transport system facilities, on the main design characteristics of trunk pipeline facilities and points of transshipment, discharge, loading, acceptance, delivery allows persons interested in increasing sanctions pressure, track oil cargo flows and oil product transportation routes in order to target new sanctions both against a natural monopoly entity and its counterparties,” the document says.

These changes were initiated by Russian Deputy Prime Minister Alexander Novak.

The right to refuse to disclose sensitive information appeared in March 2022 against the backdrop of sanctions against Russia due to a special military operation. It was assumed that this effect of the new rules will end at the end of this year. On November 28, the Cabinet press service reported that the government had extended permission for companies not to disclose or disclose sensitive corporate information in a limited way due to the threat of sanctions until July 1, 2023.