Two companies were suspended from bidding on the UEE because of an attempted manipulation

Yesterday, on August 13, the Ukrainian Energy Exchange (UEE) as a result of a trading session discovered the actions of participants qualified as a targeted increase in the price level, collusion and an attempt to artificially influence prices for the purpose of manipulation. The UEE has stopped trading in natural gas No.GAS-130819-14. The bidding results for the lot on which price manipulation was applied were canceled.

“So, during yesterday’s trades in natural gas, the trading administrator from the Exchange’s security service found that two bidders, namely: TD SOKAR UKRAINE LLC and Central Gas Supply Company LLC, carried out coordinated targeted actions to raise prices on the lot for the sale by  NAFTOGAZ TRADING LLC”, the UEE said.

As a result of such actions of buyers, the price of natural gas could increase by 34.8% of the starting one, and the remaining lots of the seller could not be sold.

These companies are temporarily deprived of access to exchange trading for a period of 60 calendar days and must pay a fine.

Chairman of the UEE Committee Olexiy Dubovsky said that additional restrictive measures will be introduced at the UEE, including raising the level of the guarantee deposit to exclude such cases.

Tags: gas, contracts, hydrocarbon production, tariffs, corruption, legislation

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