London, 19 February 2016 – The Russian government has officially adopted price assessments published by commodity price reporting agency Argus as the basis for calculating the basic rates of mineral extraction tax for all crude exported beyond the customs union of Russia and Belarus, with effect from 1 February 2016. Argus price assessments for Urals and ESPO Blend have been used to define the mineral extraction tax on crude produced from new offshore fields and exported outside the customs union since October 2014.
The Russian government’s official newspaper of record, Rossiyskaya Gazeta, on 15 February published the average Urals price in the European market for January, based on Argus monthly northwest Europe and Mediterranean price assessments. This value will be used in the formula for calculating the basic mineral extraction tax rate for January 2016.
The basic rate of mineral extraction tax is calculated on the basis of Urals northwest Europe and Mediterranean price assessments, for 80,000t cargoes. In addition to mineral extraction tax, the Russian government is now using exclusively Argus prices to calculate export duties on crude, oil products and LPG, and as a benchmark to control transactions within the framework of its transfer pricing law.
Argus Media executive chairman and publisher Adrian Binks said, “We are pleased that the Russian government has chosen to extend its use of Argus price assessments in this manner. Argus opened its office in Moscow over 20 years ago and, with more than 90 staff and 23 Russian language publications, we offer deep, accurate and insightful price reporting and analysis to and about this crucial market.”
Data Sources: Argus