The Russian government is moving toward recalculating export duties on Urals crude for shipments destined for domestic exporters starting in June. The move also aims to cap the discount used in pricing Urals oil, incorporating not only the reference price but also the cost of the Brent crude benchmark in North Sea markets. This shift is outlined in amendments to the Customs Tariffs Law and reported by the agency TASS.
Parliament’s lower house committee is set to review the changes on Monday, according to the publication. The document specifies that the calculation of export duties on oil should reflect the average Urals price in global markets, including benchmarks from the Mediterranean and Rotterdam, in addition to the North Sea Brent price. The North Sea family mirrors share prices for Brent, while other regional references such as Forties and Ekofisk in the North Sea, along with Norwegian Oseberg and Troll, are also noted as part of the pricing framework.
Earlier, in the second half of February, the Federation Council supported a law that would limit how much Urals could be discounted against Brent when computing oil taxes, with the restriction taking effect from April 1.
By the start of April, the discount applied to Urals in relation to Brent would be limited when calculating taxes for oil producers in Russia. The measures cover the discount used in computing mining extraction tax, value added tax, and excise duties on oil.
An agreement in force since December set a price ceiling on Russian oil at $60 per barrel, applicable to deliveries to the European Union, the G7 nations, and Australia. From February 5, the cap for Russian petroleum products sold at prices above crude oil, such as diesel and kerosene, rose to $100 per barrel. A separate ceiling of $45 was established for discount-sensitive products like naphtha and fuel oil, and this framework has been instrumental in shaping pricing expectations across the market. This information reflects policy stances reported by multiple outlets and summaries of the price cap arrangements that have been widely discussed in policy circles and market analyses (as cited by TASS).
The evolving policy landscape affects how Russian oil is priced internally and how export duties are calculated. Observers note that the goal is to align domestic tax calculations more closely with global price signals, reducing arbitrage opportunities and reinforcing government revenue stability. Market participants have watched the changes with caution, given their potential impact on mining taxes, VAT receipts, and other fiscal instruments tied to energy exports.
Overall, the reforms signal a tighter linkage between Urals pricing and established benchmark prices in major markets, while also leveraging international price caps to influence both export dynamics and the taxation framework. Analysts emphasize that the extent of the fiscal impact will depend on how the new pricing inputs interact with daily market volatility and how promptly the new rules are implemented across administrative agencies and oil producers.
Citations: This summary reflects reporting and official communication captured by TASS and corroborated by market-focused briefings from financial news services. (TASS)