Abstract
The purpose of this research is the assessment of the competitive environment in the Russian oil market. The subject-matter of the study is the Russian oil and gas companies as a basis of the Energy market. We check the hypothesis about the development of the mechanism of corrective condition in the sphere of preliminary control of market concentrations in the fuel and energy complex (FEC). The basis of this research is the modern theory of industry markets studying various structures of the markets, the behavior of their participants, probable consequences of their functioning and interaction, as well as the impact of the state on the functioning of markets, its participants, and the results of their activities. We calculated and analyzed the key indicators characterizing the processes of market concentration in the oil industry. We also considered the competition policy of the Russian Federation in mergers and acquisitions deals (M&A deals) concerning oil and gas assets. The authors estimated over 460 decisions made by the Federal Antimonopoly Service of the Russian Federation for the period from 2011 to 2015 in the control on economic concentration in fuel-and-energy industry. Based on the data characterizing the development of competitive environment, we have proved that the considered goods market belongs to markets with insufficiently developed competition. The results of the research will make a certain contribution to studying the efficiency of M&A transactions in the oil and gas industry, and also can be applied for the implementation of anti-monopoly actions by the Federal Antimonopoly Service of the Russian Federation.
Highlights
The competitive environment in the Russian Federation began to form in the conditions of the refusal of the methods of the planned economy by business entities
The governmental restrictions to enter the oil market are the following: the need to obtain licenses, environmental constraints, the need to achieve results at the hard geological and weather conditions, the use of innovative technologies access to which is limited. Another barrier to entry the market are the limited number of refining facilities and limited capacity to use pipeline service of JSC Transneft system, as well as the existence of Vertically Integrated Oil Companies, which possess more than 70 % of capacities on processing of crude oil. 1
— The structure of the Russia oil industry has only oligopolistic nature and is characterized by the availability of the huge vertically integrated oil companies carring out activities on all segments of the oil market: oil production and oil refining, storage, wholesale, small wholesale and retail sale
Summary
The competitive environment in the Russian Federation began to form in the conditions of the refusal of the methods of the planned economy by business entities. New institutes and processes were reproduced for quite a long time. It constrained the development of the market relations, determining both the state and business actions up to the beginning of the 2000th. Among the main features of business in the period of the transitional economy of the Russian Federation, it is possible to note its criminal nature (including raiding), legal nihilism, the drive to the market power and abnormal profit for short terms, injurious resource consumption. The existing scheme of redistribution of the main financial resources through the government budget and control over prices of products and services of natural monopolies distorted the functioning of a market mechanism
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