27 Apr 2023 11:02

Discounts on Russian oil decreasing, now at about $26-$27/barrel to Brent price - Novak

MOSCOW. April 27 (Interfax) - Discounts on Russian oil compared to the price of benchmark Brent crude are decreasing and are currently at about $26-$27 per barrel, Deputy Prime Minister Alexander Novak told reporters.

"Right now the discount is actually lower than the minimum set in the law, so, on the contrary, more is being taken than the bar set in the law. Now the discount against North Sea oil [Brent] in the Baltic is $26-$27 per barrel, while in the law the discount costs $34 per barrel in April [...], meaning the tax base is higher," Novak said.

He said taxation is currently pegged to the European market, while Russian oil is now also going to other markets where discounts are lower than in the Baltic, "but taxes were taken as always."

Russia has made changes to its Tax Code under which the Brent price reduced by $34 per barrel in April, $31 in May, $28 in June and $25 in July is used to calculate the mineral extraction tax (MET) and reverse excise on oil as of April 1.