(RIA Novosti) - Russia's Economic Development and Trade Ministry said Wednesday it would submit a draft resolution on an oil product exchange to the government by September.
President Vladimir Putin said on May 10 that Russia, as a leading oil exporting nation, should establish its own oil exchange to trade crude and petroleum products in rubles, reports Trend.
"This will be a draft resolution under which state procurement companies will be directed to the exchange," the ministry said.
The ministry said government procurement companies from the Defense Ministry, agriculture and the thermal power sector would possibly have to purchase petroleum products on the exchange as early as from January 1, 2007.
But the ministry said the oil product exchange would not cover all government purchases.
"At the first stage, they will purchase 20% of the total volume of fuel on the exchange," the ministry said. "After that, volumes will be increased, taking into account experimental trading. But they [government purchases] will hardly reach 100% on the exchange. The exchange will not absorb the entire market - the government will continue to make purchases at tenders and auctions."
The ministry said oil product exchanges could be created in several large regions at the first stage and the list of these bourses could be expanded afterward but the rules of trading should be unified.
The ministry also said oil product exchanges could subsequently develop derivatives in the form of futures and options.