Putin calls for method to determine Russian oil price under ban

He said the discount increased because the price of freighting vessels for the transportation of Russian oil and oil products had jumped after the introduction of the price cap. (File photo: Jeff W/Unsplash)

MOSCOW – Russian President Vladimir Putin on Friday instructed the government to specify the method for determining the prices of Russian oil and its products.

“To present proposals on specifying the methodology for forming the price of oil and petroleum products in order to set taxes for the oil industry and to minimize the negative impact on federal budget revenues, taking into account the peculiarities of the formation of mentioned oil prices under sanctions restrictions,” according to an official decree.

On Jan. 12, Russian Deputy Prime Minister Alexander Novak said at a government meeting that the biggest risks for the country’s energy sector are the discount on Russian oil, the embargo on oil products, and the price cap.

He said the discount increased because the price of freighting vessels for the transportation of Russian oil and oil products had jumped after the introduction of the price cap.

The report on the implementation should be presented by March 1, the decree read.

Putin also charged the government to prepare investment documents on the renovation of Russia’s water and air transport.

Putin also signed on Friday a law on mutual recognition of foreign visas with Belarus, meaning that foreign citizens and stateless persons receive the right to enter, leave, stay and transit through the territory of Belarus and Russia on the basis of a visa from one of the states and identity documents. (Anadolu)