The Ministry of Finance has prepared a draft law for submission to the State Duma that will allow the ongoing use of quotes from the international agency Argus for the calculation of oil taxes. RBC has reviewed a copy of the document. The draft legislation permits authorities to utilize these indices until September 1, 2028. The directive to submit amendments for review in the State Duma was issued by Prime Minister Mikhail Mishustin. A source at RBC close to the government confirmed that the draft was approved by the legislative activity committee under the government.
According to the existing law, starting from March 1, 2026, foreign companies and Russian legal entities with more than 20% foreign participation are prohibited from exploring commodity markets in Russia. The new amendments imply exceptions for foreign organizations whose data is used in tax legislation. The amendments are proposed to apply to legal relations established from March 1.
The key beneficiary of these changes remains Argus, registered in the United Kingdom. The proposal to retain the agency's quotes for the calculation of oil taxes was made by the Ministry of Finance, as reported on March 19 of this year by Deputy Minister of Finance Alexey Sazanov. As early as the autumn of 2025, Argus notified the ministry of the risks associated with reducing its activities in Russia and requested regulatory adjustments.
The agency's quotes are utilized by the Ministry of Finance for calculating mineral extraction taxes and the fuel damping mechanism (a budgetary compensation for the difference between export and domestic prices). Additionally, these data are also used by the Ministry of Economic Development when establishing export duties.
Import Substitution of Indicators
It was planned that starting in 2024, Russia would transition to its own index for oil tax calculations. The amendments to the Tax Code envisaged using a quote based on oil prices from over-the-counter transactions on the St. Petersburg Exchange. However, the Ministry of Finance raised questions about its representativeness and postponed the transition to exchange indices until 2025.
The St. Petersburg Exchange has actively promoted the idea of providing alternatives to global price indicators in oil tax calculations over the past few years. In January 2025, the National Exchange Price Agency (NEPA) was established based on the exchange. It forms price indices and indicators based on data obtained from exchange trading and registration of over-the-counter transactions, as well as information from market participants. The exchange then proposed using its indices for oil tax calculations but received a rejection from the Ministry of Finance.
Currently, the St. Petersburg Exchange is not in discussions with the government or the Ministry of Finance regarding the use of exchange price data for the purpose of oil taxation, a representative of the trading venue informed RBC.
In the conclusion to the draft law from the Institute of Legislation and Comparative Law under the government, the necessity of the amendments is explained by the reduction of risks for budget revenues. It is noted that the changes are targeted and ensure the continuity of administrative procedures related to the calculation of export duties and tax bases, as well as support the predictability of regulations for all market participants by maintaining the existing payment calculation methodologies.
RBC has sent inquiries to Argus, the government press office, and the Ministry of Finance.
Why the Ministry of Finance Values Argus Indices
The Ministry of Finance aims to minimize risks of losses in oil and gas revenues when calculating prices. As noted by Sergey Tereshkin, CEO of the Open Oil Market marketplace for oil products, the Argus methodology is the most recognized in the industry and, importantly for the Ministry of Finance, it is neutral regarding the influence of oil producers, traders, and any other market participants. Moreover, Argus data are based on a large number of transactions in the spot market, which allows for a real reflection of market conditions.
Regarding the Urals delivery futures at the St. Petersburg Exchange, the liquidity of trading in this instrument is insufficient for this indicator to be regarded as a reliable source of market data, Tereshkin adds.
In the absence of the proposed amendments, the Ministry of Economic Development will not have official data for calculating budget payments, explained Vladimir Gruzdev, chairman of the Russian Lawyers Association. "The exemption that the legislature provides regarding the commencement of the prohibition gives government authorities time to prepare national monitoring indicators for the commodity market. It is assumed that after September 1, 2028, government bodies will be able to use studies conducted without the participation of foreign organizations," he stated.
As of 2023, Russia also hosts the Center for Price Indices (CPI). It publishes indices based on similar specifications used in Russian legislation for tax purposes, stated Natalia Porokhova, CEO of the CPI. The Center operates in accordance with the practices of international agencies and is accredited by the Bank of Russia. CPI methodologies have been reviewed by federal government bodies across State Duma committees.
According to Porokhova, the main obstacle to substituting indices from the UK agency is legislative norms that have enshrined its monopoly in Russia. "Russia has already undergone a path of import substitution in similar industries, where the inertia of global payment, rating, and reinsurance infrastructure complicates the development of national players. Changes will occur here, as since 2022 and especially in the last month, a breakdown of the global price standard system has started," she added.
At the same time, there are challenges in forming the primary pricing benchmark for Asia—Dubai. The Urals oil increasingly relies less on Brent, as it is supplied to Asian markets. This will inevitably lead to changes in oil price benchmarks, and it is crucial that inertia in linking to existing legislation in Russia is not maintained, Porokhova believes. She also emphasizes that the Argus agency itself emerged during the oil shocks of the 1970s, when oil trading underwent radical changes. The oil shocks of 2026 are similarly reshaping trade and provide Russia with a chance to create its own price benchmarks.
Source: RBC
