FBK Partner Took Part in the Meeting of Transneft Council of Experts

Alexander Ermolenko, the Legal Consulting Department director, took part in the meeting of the Transneft council of experts within the framework of which the experts discussed the prospects of amending the rules of connecting oil refineries to the trunk pipelines and its potential effect on the oil industry.
Draft amendments of the rules for connection are currently under preparation by the Federal Antitrust Service of Russia.

Alexander Ermolenko spoke about the legal aspects of the proposed by the FAS changes in the regulations on connecting the refineries to the trunk pipelines system. According to the FBK Partner, any changes in the rules and regulations affecting the operation of business subjects should be taken into consideration when making decisions, planning of the activities, and financial and economic results. Besides, it is important to assess the consequences that might be caused by the proposed changes. “While emphasizing that the FAS project has a general objective to increase business competition in the sector, to enlarge the number of oil refineries involved in the production of petroleum products, we can’t help ignoring some negative aspects it might generate. They should be taken into account when finalizing the project,” said the expert.

The participants in the Expert Council meeting discussed a range of significant for the sector issues related to the connection of refineries to oil transport communications, including the specific characteristics of state control over compliance with the requirements of technical regulations and standards, the impact of the rules offered by FAS for connecting the refineries on the business and profit of the vertically integrated companies, their economic activities, the impact of the proposed changes on the quality of fuel.

The Transneft Expert Council has been operating as a public platform for the discussion of topical issues primarily in the fuel and energy sector since December 2012, with the involvement of a range of experts, analysts and public figures. The Council of Experts holds regular meetings with the participation of representatives of the leading consulting companies, public authorities and the managers of the energy companies.