Russia plans caps on crude oil discounts to as low as $25 per barrel

Proposal: Discount of $34 in April, $31 in May, $28 in June and $25 in July'

Russia’s State Duma introduced a bill late on Saturday setting discounts for Russian oil exports, according to the lower house of parliament’s website.

Under the draft proposal, the discount on dated Brent oil will be limited to $34 per barrel in April, declining to $31 in May, $28 in June and $25 in July.

The government has been debating how to calculate Russia’s taxable oil price following the European Union’s import ban and the resulting lack of a reliable price-setting mechanism.

Russia currently uses Urals price assessments in Europe’s Rotterdam and Augusta ports, provided by commodity price reporting agency Argus, to determine its