The law changes the procedure for determining the price of Russian oil used to calculate the mineral extraction tax for oil production, the tax on additional income from extraction of hydrocarbons and excise tax on crude oil.
8 February 2023, 07:00 GMT
If Urals oil will be cheaper than the benchmark Brent oil by more than $34 per barrel in April, then for the calculation of taxes, the price of the Russian brand will be considered the same as the cost of the Brent reduced by $34. Similarly, in May, the cost of Urals for calculating taxes will be determined at a discount of $31 per barrel in comparison to Brent oil, in June - $28, and starting from July - $25. If the discounts on Russian oil are less than these figures, then taxes will be calculated based on the actual value of Urals.
The transitional period of applying discounts to the Brent oil price will allow oil companies to adapt to the new procedure for calculating taxes based on Urals quotations.
The law goes into effect on April 1, 2023.