Support The Moscow Times!

Putin Orders Draft Plan for Metals Exchange

Prime Minister Vladimir Putin has called on regulators to create plans for a national metals exchange by Aug. 1, a move intended to avert price rows between producers and industry, Vedomosti reported Monday.

A source said the plans were already being "seriously studied."

Putin met with regulators from the Federal Anti-Monopoly Service, the Finance Ministry and other bodies last week as part of a drive to curb rising domestic steel prices.

The prime minister also called on the regulators to work out model long-term agreements for metals buyers that would take into account market prices and distribute risk.

Rising prices in the metals sector have become a major issue in Russia. Putin had to intervene to broker a compromise following a serious of complaints from industry about the planned price hikes from steel producers.

The current proposal calls for trade in a range of metal products as well as coal, coking coal and iron ore.

Small quantities of coking coal are already traded on a St. Petersburg-based commodities exchange.

Analysts at VTB were skeptical about the proposal, noting that such commodities are not traded widely on international exchanges and previous calls for a Russian metals bourse have yet to yield significant results.

"An exchange trade of metal products, coal and iron ore is not a globally developed practice and is quite complicated due to the nature of the products," the bank's analysts wrote.

"Therefore, it is not something that could be developed quickly domestically."

… we have a small favor to ask.

As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just 2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Continue

Read more