Discounts for Russian oil, forced by Western sanctions, now at $28, biggest since 2023

The discount to Brent for Russia's flagship Urals oil blend in the Baltic Sea has widened to $28 per barrel, the highest level seen since a peak in April 2023, the Kommersant newspaper reported on Thursday citing data from Argus.

The discounts for Russian oil, forced by Western sanctions imposed over the conflict in Ukraine, have hit federal budget revenues.

Kommersant said the Urals discount to Brent on the Free on Board (FOB) basis in the ports of Primorsk and Ust-Luga in February 9-13 widened by $0.7 to $28 per barrel, the biggest since April 2023.

It said the outright Urals price for the period declined by $1.77 to $42.28 per barrel.

-Guy Faulconbridge/Reuters