Putin instructed to submit proposals on the calculation of oil prices for taxation

Russian President Vladimir Putin instructed the government to submit proposals by March 1 to clarify the methodology for calculating the price of oil and petroleum products for tax purposes. List of instructions of the head of state published on the Kremlin website.

“Submit proposals to refine the methodology for determining the price of oil and oil products used for the purpose of taxing oil industry organizations in order to minimize the negative impact on federal budget revenues, taking into account the specifics of the formation of indicative oil prices under sanctions restrictions,” the message says.

The instruction was given following the results of the meeting with government members held on January 11. Prime Minister Mikhail Mishustin has been appointed responsible for implementation.

“Vedomosti” earlier wrotethat the authorities began to intensively discuss changing the principles for calculating the price of oil for tax purposes against the backdrop of a sharp decline in the cost of Urals in recent months. On January 11, at a meeting of the president with members of the government, the issue of increasing the Urals discount was discussed, among other things. Putin asked Deputy Prime Minister Alexander Novak to analyze this problem so that it “does not create any problems with the budget,” recalled one of the interlocutors of the publication.

The President instructed the government to propose alternative options for calculating oil prices, the source said. According to both interlocutors close to the government, the main option at the moment is to tie the price of Urals to benchmark grades: Brent or Dubai Crude.