Potential of commodity benchmarks regulation in Ukraine: EU experience

Issue: № 1/1, 2021

Doi: https://doi.org/10.37634/efp.2021.1(1).7

In their activities, state bodies and state-owned enterprises of Ukraine constantly turn to reference prices published by national and foreign news agencies, as evidenced by both regulations and data from the e-procurement system. However, the lack of definition or established practice of translation and application of terms related to this area indicates the underdevelopment or initial stage of harmonization of Ukraine's and other countries’ economic practice. We state that the issue of benchmarks regulation is relevant at the level of state economic decisions, given the specific impact of specialized news agencies on economic processes. Thus, the purpose of this study is to present ways of possible state regulation of commodity benchmarks in Ukraine. We determined that relations in the field of benchmarks in Ukraine are not provided with a legislative framework in full measure. Thus, it is characterized by discreteness, although the reference to benchmarks is carried out not only by business entities but also by government agencies. Therefore, some measures are proposed to regulate the field of benchmarks. Ukraine has a possibility to rely on the European experience, critically evaluate it and take the most important aspects of regulation, given the initial stage of development of the benchmark system in Ukraine. In particular, one of the possible actions is to establish a reference register of benchmarks. Furthermore, price reporting agencies and other benchmark-related economic actors might be recommended to bring their methodology and activities in line with IOSCO principles, as the clarity and transparency of market assessment are, among other things, a guarantee of objectively effective performance of tasks for taxation and in the public procurement.

Keywords : benchmark, price assessment, EU, information agency, Tax Code of Ukraine, price indications, price reporting agencies, Platts


1. Besley T., Persson T. Why Do Developing Countries Tax So Little? Journal of Economic Perspectives. 2014. Vol. 28. № 4. pp. 99–120.

2. Brautigam D., Fjeldstad O.H., Moore M. Taxation and State-Building in Developing Countries: Capacity and Consent, Cambridge: Cambridge University Press, 2008.

3. Besley T., Persson T. Pillars of Prosperity: The Political Economics of Development Clusters. Princeton, NJ: Princeton University Press, 2011.

4. Dincecco M. State Capacity and Economic Development: Present and Past. Cambridge: Cambridge University Press, 2017.

5. Ricciuti R., Savoia A., Sen K. How do political institutions affect fiscal capacity? Explaining taxation in developing economies. Journal of Institutional Economics. 2019. Vol. 15, № 2. pp. 351–380. URL: https://doi.org/10.1017/S1744137418000097.

6. Law of Ukraine "On amendments to the Tax Code of Ukraine to improve data administration, eliminate technical and logical inconsistencies in tax legislation" of 16.01.2020 № 466-IX. URL: https://zakon.rada.gov.ua/go/466-20 (in Ukrainian).

7. Tax Code of Ukraine of 02.12.2010 № 2755-VI. URL: https://zakon.rada.gov.ua/go/2755-17. (in Ukrainian)

8. Law of Ukraine "On public procurement" of 25.12.2015 № 922-VIII. URL: https://zakon.rada.gov.ua/go/922-19 (in Ukrainian).

9. The role of Derzhzovnishinform in public procurement. URL: https://dzi.gov.ua/press-centre/in-mass-media/rol-dp-derzhzovnishinform-u-publichnih-zakupivlyah/ (in Ukrainian).

10. Featured Insights. URL: http://www.indexindustry.org/ insights/.

11. On indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 : Regulation No 2016/1011 of 8 June 2016. URL: http://data.europa.eu/eli/reg/ 2016/1011/oj.

12. IOSCO. Principles for Oil Price Reporting Agencies Final Report. 2012. URL: https://www.iosco.org/library/ pubdocs/pdf/IOSCOPD391.pdf.

Download article