MOSCOW, July 20. /TASS/. Russia’s State Duma (lower house of parliament) has passed in the second reading amendments initiated by the government, which suggest a reduction of the discount of Russia’s Urals oil to Brent benchmark from $25 to $20 per barrel starting September 1. Amendments were submitted for the second reading to the bill aimed at implementation of certain provisions of the focal point of Russia's tax policy.

Russian State Secretary, Deputy Finance Minister Alexey Sazanov explained earlier that starting September 1, 2023, it is suggested to cut the discount to Urals prices used for calculating the mineral extraction tax (MET) and the additional income tax (AIT) to $20. Currently the discount ceiling stands at $25 starting July 1.

The law limiting the Urals discount to Brent in calculating MET and AIT came into force in Russia in April 2023. It limits the discount to $34 in April, to $31 in May, $28 in June, and $25 in July. Moreover, the Urals discount is limited in calculating export duties.