Russia’s flagship Urals oil blend is being sold from its Baltic ports at the deepest discounts for around three years compared to the global benchmark Brent crude, according to Reuters data.
The discount, a consequence of Western sanctions imposed on Russia over the war in Ukraine, is important because lower oil prices hit the government’s budget.
State budget revenues from oil and gas dropped by 24% in 2025 to the lowest level since 2020, according to Finance Ministry data, as dollar-denominated oil prices fell while the rouble appreciated.
Kommersant newspaper, citing data from Argus, said the Urals discount to Brent on a Free on Board (FOB) basis in the ports of Primorsk and Ust-Luga from February 9-13 widened by $0.70 to $28 per barrel, the highest level since April 2023.
It said the outright Urals price for the period declined by $1.77 to $42.28 per barrel.
According to Reuters data, the Urals price on an FOB basis in Primorsk for Wednesday – the latest available – was $44.14 and Dated Brent was quoted at around $72.45 on Thursday, also implying a discount of around $28.
Russian oil sellers have been cutting prices to attract demand as exports to India, the second-largest buyer after China, have sharply declined since the U.S. announced it was cutting tariffs on Indian goods in return for a halt to Indian purchases of Russian oil.
Kommersant said rising freight rates because of icy conditions in the Baltic Sea had also affected the pricing of Urals oil.
(Reporting by Reuters; editing by Mark Trevelyan)