Putin Aims Solutions To Resolve Steep Oil Discount

Vladimir Putin ordered the deputy prime minister to draft proposals on curbing the impact on the budget of the discount on Russian oil prices, Deputy Prime Minister Alexander Novak said.

• "As far as oil is concerned, the main problem is high discount as a result of high levels of freight costs. The cost of freight has risen quite dramatically due to the risks that carriers and counterparties face, regarding possible sanctions, because they do not set a price cap…The discount should diminish over time, as we have observed it throughout 2022, when in March and April, the discount increased greatly, then it began to fall gradually and halved," Novak said.
• "So now the main risk is, in my opinion, the discount. The second one is the embargo on the supply of oil products and the price cap, which are being introduced. We will respond to these challenges, we will report, we will take all necessary measures to ensure supplies to new markets, logistics, as well as appropriate shipping," he said.
• "We need to look at this discount so that it does not create any problems with the budget. Discuss it, and then please report your proposals to me separately," Putin said.