LONDON (Reuters) - Commodities trader Trafigura [TRAFG.UL] will be the first among its peers to join a global initiative aimed at shedding light on companies’ dealings with governments of natural resources-rich countries.
The Oslo-based Extractive Industries Transparency Initiative (EITI) has 48 member countries, including oil producers like Iraq, Nigeria and Azerbaijan.
It also has as members 90 oil, gas and mining companies, but until now no dedicated commodity trading firms.
Under the initiative, Trafigura will be required to disclose payments to EITI member countries’ national oil companies for crude oil, gas and petroleum products. It will also make public the payments it has made in the form of corporate taxes and licenses.
The move comes as European governments put more pressure on companies to increase transparency in an effort to curb corruption. From next year, UK-registered companies will have to report payments made to foreign governments, and other European countries are expected to implement similar measures.
“We believe that as a leading commodities trader we have a role in disclosing how much we pay to governments and their NOCs (national oil companies)”, Trafigura Chief Executive Officer Jeremy Weir said in a statement.
Trafigura will not be required to disclose payments to countries that are not members of the EITI, such as Angola and Russia.
Reporting By Libby George; Editing by Michael Urquhart