For the first time, Russia has applied the minimum price level mechanism in the oil and gas industry to protect government revenues from sanctions, as indicated in a letter from the Federal Tax Service of Russia. According to the letter, Russian energy companies were supposed to use the average Urals crude oil price of $65 per barrel to calculate oil taxes for January. However, according to Bloomberg, the market price of oil was below this level, and the government set a discount of $15 per barrel to the Brent benchmark for Urals in the tax formula. According to the publication, the actual discount at which Russia sold Urals oil amounted to $18.12 per barrel. This indicates that Russia has successfully refocused on customers in Asia and deployed a shadow fleet, despite attempts by the G7 countries to reduce Russia's oil revenues. However, increased pressure on shipowners, traders and oil buyers to comply with the price ceiling led to an increase in the discount on Urals. Russian Deputy Prime Minister Alexander Novak expressed the expectation that the discount on Urals will decrease as soon as the market calms down and the supply chain is adjusted. Earlier, the G7 countries approved the introduction of a price ceiling for oil supplies from Russia at the level of $60 dollars per barrel supplied by sea.
