Vedomosti: the cost of Urals may be tied to the price of Brent or Dubai Crude
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Russian President Vladimir Putin has instructed the government to consider alternative ways of calculating the price of Russian oil, the newspaper reported. Vedomosti with reference to sources. According to the publication, the cost of the Russian Urals can be tied to the price of the reference Brent or Dubai Crude.
According to the publication, at a meeting of the president with members of the government on January 11, the issue of increasing the discount on Urals was discussed. Vladimir Putin instructed Deputy Prime Minister Alexander Novak to analyze this problem so that it does not create “any problems with the budget.”
According to Vedomosti, the main option for adjusting prices for Urals is now considered to be pegging them to the cost of Brent or Dubai Crude. Taxes can be calculated using the average price of these oils minus the discount. Its size is still being discussed, but the government estimates it at $10-15.
Another possible option for calculating the cost of Urals is the quotes of the St. Petersburg International Commodity and Raw Materials Exchange. According to Vedomosti sources, this indicator raises questions, as trading volumes on the site are insignificant.
The Ministry of Finance, in response to a request from Vedomosti, reported that they had begun work with departments to analyze new options for calculating the cost of Urals. The results of the work will be prepared in the first quarter of the year, the department added. The Ministry of Economy also reported on the work on the transition to domestic sources of price information.
Now the cost of Urals is calculated by the Argus agency. Based on these data, the Ministry of Finance calculates the amount of the mineral extraction tax, additional income tax and export duties. The discount on Urals began to grow after the West agreed on restrictions on Russian oil in October last year. The Ministry of Economy reported that the average cost of Russian oil in October 2022 was $70.62 per barrel, in November – $66.47, in December – $50.47.
On the consequences of lower oil prices for Russia – in the material “Kommersant FM” “The embargo and the ceiling crushed oil prices”.
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