Development Of Competitive Environment Research Articles

The debt crisis on Ukraine’s natural gas market and ways to solve it

The article considers the main reasons that have led to the debt crisis in the natural gas market of Ukraine due to the accumulation of debt from gas supply and gas distribution companies. The purpose of the study is to identify the main prerequisites for the formation of debt in different segments du-ring the reform of the natural gas market through partial implementation of the requirements of European energy legislation. Having chosen the European vector of development Ukraine is interested in meeting the requirements of European policy within the framework of its international obligations and aspirations for European integration. This necessitates adaptation of the national institutional environment to the basic requirements of the Second and Third energy packages. According to the existing international obligations, the national natural gas market is undergoing significant changes towards liberalization and development of competitive environment. However, in the segment of retail market and supply of natural gas to household consumers for a long time the necessary changes in the institutional environment did not occur or temporary decisions were made, which did not contribute to solving the sector’s crisis, but only froze the existing model of relationships between various market participants. Reluctance to implement unpopular solutions in the supply of natural gas to household consumers and attempts to shift the increase in the cost of gas supply tariffs for the needs of the household consumers to other categories of consumers led to a constant redistribution of monopolistic influence and accumulation of significant debt between market participants. The article analyzes the causes of debt between various participants in the retail segment of the natural gas market, which makes it possible to identify the main factors of such debt. These factors include: the lack of a sufficient level of transparency in the tariff for natural gas supply and transportation services; the absence of a 100% accounting for various categories of consumers, which makes it necessary to establish consumption standards, which later become the object of significant abuse; the existing model of public service obligations, which, given the significant redistribution of natural gas, results in significant market distortions; and the imperfect approach to calculating the costs of gas distribution companies in terms of temperature coefficients in the tariff, provided that gas metering exists not in energy units, but in cubic meters. Based on the results obtained in the article, the author sets forwards various recommendations for the implementation of measures, whose main content is to eliminate the institutional prerequisites that lead to the risks of market failures, which may cause debt.

Боргова криза на ринку природного газу України та шляхи її вирішення

The article considers the main reasons that have led to the debt crisis in the natural gas market of Ukraine due to the accumulation of debt from gas supply and gas distribution companies. The purpose of the study is to identify the main prerequisites for the formation of debt in different segments during the reform of the natural gas market through partial implementation of the requirements of European energy legislation. Having chosen the European vector of development Ukraine is interested in meeting the requirements of European policy within the framework of its international obligations and aspirations for European integration. This necessitates adaptation of the national institutional environment to the basic requirements of the Second and Third energy packages. According to the existing international obligations, the national natural gas market is undergoing significant changes towards liberalization and development of competitive environment. However, in the segment of retail market and supply of natural gas to household consumers for a long time the necessary changes in the institutional environment did not occur or temporary decisions were made, which did not contribute to solving the sector’s crisis, but only froze the existing model of relationships between various market participants. Reluctance to implement unpopular solutions in the supply of natural gas to household consumers and attempts to shift the increase in the cost of gas supply tariffs for the needs of the household consumers to other categories of consumers led to a constant redistribution of monopolistic influence and accumulation of significant debt between market participants. The article analyzes the causes of debt between various participants in the retail segment of the natural gas market, which makes it possible to identify the main factors of such debt. These factors include: the lack of a sufficient level of transparency in the tariff for natural gas supply and transportation services; the absence of a 100% accounting for various categories of consumers, which makes it necessary to establish consumption standards, which later become the object of significant abuse; the existing model of public service obligations, which, given the significant redistribution of natural gas, results in significant market distortions; and the imperfect approach to calculating the costs of gas distribution companies in terms of temperature coefficients in the tariff, provided that gas metering exists not in energy units, but in cubic meters. Based on the results obtained in the article, the author sets forwards various recommendations for the implementation of measures, whose main content is to eliminate the institutional prerequisites that lead to the risks of market failures, which may cause debt.

ФОРМУВАННЯ КОНКУРЕНТНОГО СЕРЕДОВИЩА ЯК ФАКТОР ЗАБЕЗПЕЧЕННЯ СТАЛОГО РОЗВИТКУ ЗАЛІЗНИЧНОГО ТРАНСПОРТУ

Efficient operation of rail transport in modern conditions has a direct dependence on the conditions of market activity. Therefore, the necessary direction of policy in the field of rail transport development, as outlined in relevant programs and concepts, is the focus on the creation of a market with competition between carriers under the conditions of regulating access to infrastructure. Such an approach will contribute to the formation of an effective competitive environment in the transport services market and will encourage the industry to improve its performance. Indeed, the presence of competition in the market encourages enterprises to work more efficiently by expanding market offers, which for transport companies involves the introduction of new forms of service and services in the implementation of transportation work.The activity of transport companies is a complex technological process, because the results of their work are displacement, that is, the beneficial effect is determined by the delivery of goods or customers to the final destination. Under such conditions, the transport service becomes a special commodity and is defined as a means of transfer, which one party (carrier) can provide to another (client).It should be noted that the transport services market is quite monopolistic, even oligopoly, which is due to the presence of a significant number of sellers and buyers and the lack of an effective mechanism for monitoring the cost of the transport process. There is also a specialization in providing the same services. For example, when traveling at small distances, the customer of transport services almost always prefers road transport over the railroad. But the efficiency of such a market is insignificant, as the inseparable component of a modern market economy is the formation and development of a competitive environment as a factor that has a direct impact on the competitor's interaction of all market participants.Ensuring the efficient development of rail transport in today's marketplace has a significant dependence on the formation and development of an effective competitive environment. This is due to the ability of railways to carry out transportation work at market value, which will direct the accumulation of funds for upgrading and further development of the industry, and allows customers to develop their own railway departments in accordance with their needs.

Development of Competitive Environment in the Oil Market of Russian Federation: Empirical Analysis

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.