Rosneft will be fueling the Russian MIA on non-competitive basis

Rosneft will be fueling the Russian MIA on non-competitive basis

Previously the company was chosen as a fuel supplier for the Russian Ministry of Emergency Situations and Investigative Committee.

Dmitry Medvedev signed a government decree according to which the company "Rosneft" and its 42 subsidiaries were selected without competition as a fuel supplier for the Ministry of Internal Affairs of the Russian Federation until the end of 2016. According to RBC, the official representative of "Rosneft" confirmed the status of the company, however, it does the cost of contract and delivery volumes are not disclosed. TheMinistrysaidthisinformationis "limited".

It is to be noted that earlier the same "Rosneft" previously has already been chosen as the sole supplier for the Ministry of Emergency Situations and the Investigative Committee. At the same time, according to the portal of public procurement, the oil company supplies gasoline to state institutions at the price more expensive than the national average. For example, the Main Department of the MES in Moscow bought gasoline from its sole supplier in the first quarter of 2016 at 49.2 rubles per liter of AI-95 and diesel fuel at 49 rublesper liter. Whereas, according to Rosstat, on February 1, 2016 the average price of AI-95 gasoline in Russia amounted to 36.76 rubles, while the diesel cost 35.46 rubles.

This said, the experts have warned that the selection of a single supplier can greatly affect the price of fuel. The CEO of "The Council on commodity markets" Alexander Gudkov pointed out that the location of "Rosneft’s" refineries will not allow to effectively supply fuel to all the territorial bodies of the MIA. Companies will have to buy fuel from other suppliers, or increase the cost of gasoline due to delivery. The oil company confirmed that they would meet the needs of the MIA "at the expense of its own gas stations and with the assistance of partner gas stations".

The Federal Antimonopoly Service said that it proposed the Government to organize a competition for the selection of suppliers, but their conclusions on this issue are of advisory nature. At the same time, before the end of June, the FAS will send the documents to the Government about the advisability of a single supplier.

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