Russian MinFin to keep using Argus CIF Urals oil quotes to calculate taxes and duties, consider other options in Q1

MOSCOW. Nov 14 (Interfax) - Russia's Finance Ministry will continue to use the CIF (cost, insurance, freight) quotes for Urals crude calculated by Argus in 2023, but will consider switching to other quotes in the first quarter, the ministry said.

"The CIF quote exists and continues to be published by Argus. It is used when calculating the MET [mineral extraction tax], the EPT [excess profit tax] and the export duty on oil. The use of this quote for calculations of taxes and duties will continue in 2023," the ministry told reporters.

"The Finance Ministry, together with the Energy Ministry, Economic Development Ministry and oil companies, will discuss the advisability of transitioning to the use of other quotes in the first quarter of next year. The preservation and stability of tax and customs revenues is a priority in future work," the ministry said.

Due to the imposition of the European Union's embargo on imports of Russian oil as of December 5, 2022, Argus has changed its approach to compiling quotes for Russian Urals crude. While before the CIF quotes in European ports (Mediterranean and Rotterdam) were determined as a result of trades, now Argus will publish the price in Russian ports, meaning FOB (free on board), and the CIF quote will be calculated taking into account the cost of transportation to European ports and insurance.