Deputy Finance Minister Kolychev suggested thinking about reducing the normative level of Urals discount

Deputy Minister of Finance of the Russian Federation Vladimir Kolychev said that there are prerequisites for the growth of oil and gas budget revenues. The discounts of the Russian brand of Urals oil to the reference grades are gradually decreasing, in this regard, it is possible to discuss the reduction of the normative discount level established by the law, Mr. Kolychev told reporters.

No one has a precise understanding of what will happen to oil prices, so one can guess here, but there are prerequisites for growth, the Deputy Minister commented on the possibility of an increase in oil and gas revenues. “Now they (oil prices.— ”b”) have really grown. Discounts, discounts of our oil, which is being sold, are also gradually decreasing, plus we have adopted a law that introduces a normative level of discount,” said Vladimir Kolychev (quoted by Interfax). It is already clear that “since the beginning of April, Urals oil has been about $60 per barrel,” he said. According to the Deputy Minister, it is possible that the discount level could be lowered.

According to the Ministry of Finance, the average price of Urals oil in March 2023 was $47.85 per barrel.

Formerly Russian authorities fixed discount Urals to Brent when calculating oil taxes: from $34 per barrel in April, it will gradually decrease to $25 per barrel by July. Budget revenues from the extraction and sale of oil and gas in March 2023 amounted to 688 billion rubles. This is 43% less than in 2022, but almost a third more than received in February 2023 (521 billion rubles).

Read more in the publication “Kommersant” “Make it to the base”.

Maria Fedotova