© AP Photo/ Sergei Chuzavkov
18:34 20.05.2016(updated 18:35 20.05.2016) Get short URL
Russia and Association of Southeast Asian Nations (ASEAN) member states are prioritizing commodity swap agreements in discussions on energy industry cooperation, Russian Minister of Energy Alexander Novak said Friday.SOCHI (Sputnik) — Commodity swaps, mostly used on the oil market, enable both producers and consumers to hedge risks from fluctuating prices. Under a swap contract, the producer usually receives a fixed rate stipulated by the contract, while the consumer pays a rate tied to the market price of the commodity.
“Swap deliveries to those countries which need gas supply,” he told Rossiya 24 TV channel when replying to a question regarding the projects to be prioritized in energy cooperation between Russia and ASEAN.
On May 19-20, the Russian resort city of Sochi hosts the Russia-ASEAN summit, marking the 20th anniversary of Russia-ASEAN partnership. ASEAN comprises Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Cambodia, Laos, Myanmar and Vietnam.
Read more: http://sputniknews.com/business/20160520/1039989927/russia-asean-gas-swap.html#ixzz49Kha1o8H