Western Sanctions Forced Kremlin Oil Tax Changes: Adeyemo

The Kremlin's changes to the way it taxes oil sales were forced by Western sanctions according to US Deputy Treasury Secretary Wally Adeyemo.

• Russian President Vladimir Putin in February signed a law fixing the discount on Russia's dominant Urals blend of crude oil for tax calculations.
• The sanctions had forced Russia into “massive discounts” on Russian oil according to Adeyemo.
• "When it comes to the price cap, either Russia continues to accept the steep discount that our actions have imposed on their energy exports, or they institutionalize it themselves with these changes to their tax regime," Adeyemo said.
• The tax changes "will constrain Russia’s oil companies going forward, leaving them with fewer funds to invest in exploration and production and over time diminishing the productive capacity of Russia's oil sector."