The Agency the Republic of Slovenia for Commodity Reserves (Zavod RS za blagovne rezerve - hereinafter: the Agency) was established by the Government of the Republic of Slovenia by virtue of the Decree on Establishing the Public Economic Institute for Commodity Reserves (Official Gazette of the Republic of Slovenia. No. 72/1995). The stockholding entity started work in 1996 and it is the legal successor of the Directorate of the Republic of Slovenia for Commodity Reserves. The Slovenian Government is the sole owner and the founder of the Agency (Zavod) and it is responsible for its obligations.
Under the provisions laid down in the Decree adopted by the Government of the Republic of Slovenia, ZORD Slovenija, the stockholding agency of the Republic of Slovenia for compulsory stocks of crude oil and/or petroleum products, merged with the Agency of the Republic of Slovenia for Commodity Reserves, as of 1 January 2010.
The following acts constitute the legal bases for the operations taken up and pursued by the Agency: the Commodity Reserves Act, the Statutes, general enactments, the decisions passed by the Government of the Republic of Slovenia and by the Administrative Board of the Agency, and the rules of procedure and the instructions issued by the ministry in charge of the provision of strategic food and non-food products.
In accordance with the Commodity Reserves Act, the Agency discharges two commercial public services, and specifically: the commercial public service for the establishment and utilisation of commodity stocks and the public economic service for the establishment of compulsory stocks of crude oil and/or petroleum products.
The programme that specifies the setting up of the state commodity stocks and compulsory stocks of crude oil and/or petroleum products is laid down by the Government of the Republic of Slovenia in its five-year programme in which the stockholding obligations is specified for the commodities that must be available and their minimum quantities in order to ensure adequate supply. By following the provisions of the aforementioned Five-year Programme, the Agency prepares its annual programme of activities and the financial plan (budget) of the Agency laid before the Administrative Board of the Agency for approval. The programme for setting up commodity stocks envisages the maintenance and replenishment of the state commodity stocks and the compulsory stocks of crude oil and/or petroleum products, stock restructuring or reduction or increase in the quantities of particular types of products, as needed.
The Government of the Republic of Slovenia decides on the use of commodity stocks when it is essential to provide for regular supply at times of major disturbances in supply and market volatility, when natural disasters strike and in war time.
Furthermore, the Government of the Republic of Slovenia prescribes the method for discharging the task of setting up strategic commodity stocks and specifies which commodities are classified as staples. The Government’s Five-year Programmes of activities and the financial plans (budgets) provide the framework for the medium-term strategy of the Agency.
The Agency is governed by the Administrative Board composed of nine members – representatives of the ministries and a representative of the employees of the Agency. The director, who is appointed and relieved of duty by the Government of the Republic of Slovenia, is in charge of the activities and work performed by the Agency.