Impact of Sanctions: Urals Oil Discount Widens

The discount for Russia's flagship Urals oil blend in comparison to Brent crude has surged to $28 per barrel, marking the highest level since April 2023, according to a report by Kommersant citing Argus data. This gap stems from Western sanctions following the Ukraine conflict, significantly impacting Russia's federal budget revenues.

Kommersant reported that the Urals discount to Brent on a Free on Board (FOB) basis at the Primorsk and Ust-Luga ports increased by $0.7 to $28 per barrel between February 9-13. This disparity is the widest recorded since April 2023.

During the same period, the outright Urals price experienced a decline, falling by $1.77 to $42.28 per barrel, highlighting the financial strain imposed by the ongoing international sanctions.