MOSCOW, October 13. /TASS/. The discount on Russian oil has decreased three-fold since the beginning of 2023 to $11-12 per barrel due to stabilization of supplies and strong competition for it on the global market, Deputy Prime Minister Alexander Novak said.

"The discount on Russian oil reached $35-38 per barrel at the beginning of the year. As of today, it roughly equals $11-12. This means that supplies have stabilized, transport and logistics chains have stabilized, we have reached agreements with our friendly countries on new markets and on participation of companies. Competition is strong for our products now and, naturally, the market demand is forming a discount decrease as well," he said in an interview with RT Arabic at the Russian Energy Week.

A decrease in discount demonstrates mitigation of risks related to supplies of Russian oil, Novak added. "If competition is strong all want cheap oil and petroleum products, the demand is high, which means the discount may decrease. We will be monitoring it. We are optimistic about that," he said.

Russia has considerably reduced the share of trade in oil and petroleum products in dollars and euro, having largely shifted to rubles, yuan, rupees and so on, Russian Deputy PM stressed. "Payments in dollars and euro remain as well, though much lower than previously. The main thing is that we have got to payment instruments and mechanisms that enable us to ensure supplies to regions where our products are demanded, at current market prices," he explained.

Russia’s draft budget for the next three-year period is based on the price of Urals crude oil of $70 per barrel on average, Novak noted.

TASS acts as an information partner of the Russian Energy Week.