Gazprom opposed the introduction of gas sales standards on the stock exchange

Gazprom (MOEX: GAZP) opposed the legislative initiative to ration natural gas sales at organized auctions. Currently in Russia there are standards for sales on the petroleum products exchange.

Gazprom’s letter to the amendments to the law “On Organized Trading” states that regulation of gas sales on the exchange is an ineffective measure that will limit the “principle of freedom of economic activity” and also reduce the interest of “regulated business entities.”

“This restriction is disproportionate to the stated goal of forming national indicators and will not lead to solving the problems of fair pricing on the commodity market, ensuring non-discriminatory access to goods and guaranteed execution of transactions,” notes a letter from Gazprom board member Vladimir Markov, which cites Interfax.

Gazprom also noted that the proposed bill does not specify what a manufacturer should do if it cannot meet the standards due to lack of demand. The company believes that it is necessary to create economic conditions for the sale of goods based on market mechanisms, rather than government regulation.

Bill was introduced to the State Duma in August by deputies and senators. The authors of the initiative propose to give the government the authority to determine the list of types and standards for the quantity of goods that are sold on the stock exchange. The State Duma will consider the bill in December.

The explanatory note states that the new measure will improve pricing mechanisms in Russia. According to the authors, the initiative is necessary because under the sanctions “the Russian economy is effectively isolated from external markets” and cannot use international price indicators.

Lusine Balasyan