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.
