Russian authorities propose thresholds of 10% for Gazprom, 2% for others to sell gas on exchange

MOSCOW. Oct 8 (Interfax) - The Russia Federal Antimonopoly Service (FAS) and the Energy Ministry have published a draft joint order approving lower thresholds for natural gas sales on the exchange and requirements for exchange trading, during which transactions with natural gas are concluded by an economic entity with a dominant position in the relevant commodity market, according to the legal information portal.

The draft order would usher in lower thresholds for the sale of natural gas, upon reaching which the price will be recognized as a market price, of 10% of the total volume of natural gas produced and sold to third parties on the domestic market and subject to transportation via the Unified Gas Supply System for the owner of the Unified Gas Supply System, in other words Gazprom , and 2% for other economic entities with a dominant position.

Thresholds to sell gas on the exchange for gas have not been established - there is a requirement for parity of volumes sold by Gazprom and independent producers, but this is systematically not being observed.