The Federation Council supported the law on limiting the discount on Urals

The Federation Council supported the law, according to which, from April 1, the discount on Russian Urals oil in relation to Brent will be limited to calculate oil taxes. Amendments included in the tax code.

The law proposes to limit the Urals discount to Brent when calculating the mineral extraction tax, the tax on additional income and the negative excise tax on oil. To calculate taxes, the Urals quote will be tied to Brent, and a fixed discount will be deducted from the value of the reference brand. The discount will be reduced gradually.

Thus, if the price of Urals in April is cheaper than Brent (North Sea Dated quotes) by more than $34 per barrel, then for tax purposes the price of Urals will be fixed as the cost of Brent minus $34. In May, the cost of Urals will be determined at a discount to Brent of $31 per barrel, in June – $28, from July – $25. If the discount on Russian oil is less than these figures, then taxes will be calculated based on the actual value of the brand.

In addition, the law increases the price differential for calculating the damper for gasoline from $20 to $25 per barrel. A price differential is also being introduced when calculating the damper for diesel fuel: from April 1, the limit will be set at $10 per barrel.

Deputy Finance Minister Alexei Sazanov saidthat the law will save 600 billion rubles in the Russian budget.

The measures provide for a reduction in oil production by 500 thousand barrels per day from March 2023, Deputy Prime Minister Alexander Novak said. At the same time, Russia will not sell oil to those who adhere to the price ceiling, either directly or indirectly. The Kremlin said that before making a decision on the answer to the price ceiling for Russian oil, they held consultations with the OPEC + countries.

Anastasia Larina