Page 129 - RusRPTJul23

The World Bank said it expects oil prices at $80 per barrel in 2023, $82 in 2024 in its latest economic outlook. Nevertheless, as the authors of the study note, natural gas prices in Europe "are expected to remain well above their pre-pandemic five-year average, despite elevated inventories."
Pakistan has paid for its first batch of Russian oil, which arrived in the port of Karachi on June 10, in Chinese currency, Reuters said on Monday, citing Pakistani Petroleum Minister Musadik Malik. According to the agency, the Pakistani minister spoke with it over the phone. He did not disclose any details of the deal, such as supplies volume and their cost, saying only that "in no scenario will the refining of this crude make a loss."
Russia's Urals benchmark, based on the St. Petersburg International Mercantile Exchange's (SPIMEX) over-the-counter (OTC) indices, could be utilized for tax calculations in the oil sector as early as this year, according to SPIMEX President Aleksey Rybnikov. Speaking at the St. Petersburg International Economic Forum (SPIEF), Rybnikov expressed readiness from a technical standpoint for the benchmark's implementation.
The decision to use the Urals benchmark has already been made, as indicated by Rybnikov. He further mentioned that a draft of amendments is currently being prepared, which includes revisions to various aspects, including the damper.
Russian State Secretary and Deputy Finance Minister, Alexey Sazanov, announced on Wednesday that a bill proposing the use of the Russian Urals benchmark based on SPIMEX's over-the-counter indices for tax calculations in the oil sector might be submitted to the State Duma (lower house) in early July. Sazanov clarified that the SPIMEX OTC indices would serve as one of the quotations considered for the calculation of the mineral extraction tax, the excess-profits tax, and the export duty.
This move to incorporate the Urals benchmark for tax calculations in the oil sector signifies a potential shift in Russia's approach to pricing and taxation in the industry. The use of SPIMEX's OTC indices could provide a more accurate and transparent framework for determining tax amounts, benefiting both the government and oil companies. As the necessary preparations are being made, it remains to be seen how this implementation will unfold and what impact it will have on the oil sector in Russia.
● Tankers & transport
One of the last arteries carrying Russian gas to Europe could be shut off by the end of next year when Ukraine’s supply contract with Gazprom expires, the Financial Times reported on June 22 citing Ukrainian Energy Minister German Galushchenko. Galushchenko said that the chances of Kyiv and Moscow agreeing the renewal of the five-year transit contract first signed in 2019 were slim — even though the route through Ukraine accounts for almost 5% of Europe’s total gas imports. “I really can’t imagine how it could be bilaterally,” Galushchenko said when asked if Ukraine would be prepared to renegotiate the agreement with Moscow following last year’s operation. “I can
129 RUSSIA Country Report July 2023 www.intellinews.com