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Putin instructs Cabinet to update oil price indicators for taxation

Since April 1, the law is effective in Russia that updates the methodology of pricing for the Russian Urals oil export blend during calculations of the mineral extraction tax and the additional income tax

MOSCOW, May 22. /TASS/. Russian President Vladimir Putin ordered the government to update and set additional indicators used in oil pricing for taxation of oil and gas companies by June 30, according to the list of assignments posted on the Kremlin’s website on Monday.

This should be done to reduce the amount of the discount used for the global oil price, according to the assignment.

"To ensure updating of existing and setting extra indicators used when determining the oil price for taxation of oil and gas companies, including for purposes of lowering the rate of the discount used for the global oil price," the assignment reads.

Since April 1, the law is effective in Russia that updates the methodology of pricing for the Russian Urals oil export blend during calculations of the mineral extraction tax and the additional income tax. The law provides for limiting of the Urals discount against the Brent.

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