Trading of Russian energy goods within EAEU necessary for full-fledged exchange trading in union - EEC
MOSCOW. Oct 15 (Interfax) - The countries of the Eurasian Economic Union (EAEU, which includes Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan) are ready to each contribute to the development of exchange trading of goods on the union's single market, and the association expects the listing of energy sector products on the exchange from Russia, Eurasian Economic Commission (EEC) Competition and Antimonopoly Regulation Minister Maxim Yermolovich said at Russian Energy Week.
There are already agreements on interaction at the exchange level, and by 2030 the EAEU plans to complete the preparation of common exchange commodity markets and sign an agreement at the country level, not only for full members of the EAEU but also for those with observer status, primarily Uzbekistan and Iran, Yermolovich said. In August this year, the countries approved a plan for the development of exchange trading in the union.
To develop full-fledged exchange trading in the union, "it is important to understand what each country can offer for the common exchange market," he said.
"If we look at Uzbekistan, for example, in Uzbekistan a large amount of cotton trade is conducted through the exchange. In Belarus, the exchange provides the opportunity to buy sugar, food products and timber on the common exchange market. But when we come to the list of goods available in Russia, we understand that this work will not be full-scale. Why? Because at the insistence of Russian regulators, energy goods are withdrawn from the common exchange market at this stage," Yermolovich said during the business breakfast at Russian Energy Week dedicated to the creation of national and supranational price indicators for goods.
He expressed hope that "we will still return energy goods to the list of those traded on the common market, that we will create transparent, equal trade for them, and this will give Russia the opportunity to be fully represented on this market."
"If this does not happen, it will be a great disappointment for the entire common market and for those partners with whom you cooperate," he said.
The issue at hand is primarily the products of the oil and gas sector, he said. "Regarding electricity and the possibility of cross-border electricity supply, much has already been done, even more than for other exchange goods. We have already had test transactions on how it could work, but there was no physical trading. But this market will launch, I think, in the near future; that is, we're targeting January 1, 2027," he said, noting that Russia and Belarus already trade electricity with each other.
"What worries me more are oil, gas, petroleum products; goods that are already standardized. We have the same approaches to their technical characteristics. What we actually need is not one-off deals for the exchange of goods if a deficit arises, as in the electricity industry. We must build a system of constant trading," Yermolovich said.
