The Ministry of Finance has prepared a draft law for submission to the State Duma that will allow the continued use of international agency Argus quotes for calculating oil taxes. RBC has reviewed a copy of the document. The draft law permits authorities to use these indices until September 1, 2028. Prime Minister Mikhail Mishustin has instructed that amendments be presented for consideration by the State Duma. An RBC source close to the government confirmed that the draft law was approved by the legislative activity commission within the government.
According to the current law, starting March 1, 2026, foreign companies and Russian legal entities with more than 20% foreign ownership cannot research commodity markets in Russia. The new amendments imply exceptions for foreign organizations whose data is utilized in tax legislation. The implementation of these amendments is proposed to cover relationships that arose from March 1.
The key beneficiary of these changes remains the UK-registered Argus. The proposal to retain this agency's quotes for oil tax calculations came from the Ministry of Finance, as announced on March 19 this year by Deputy Finance Minister Alexey Sazanov. In the fall of 2025, Argus advised the ministry of risks related to reducing its operations in Russia and requested regulatory adjustments.
The agency's quotes are employed by the Ministry of Finance to calculate mineral extraction taxes and fuel dampeners (budgetary compensation for the difference between export and domestic prices). The Ministry of Economic Development also applies this data when forming export duties.
Import Substitution of Indicators
It was planned that, starting in 2024, Russia would transition to its own index for calculating oil taxes. Amendments to the Tax Code envisaged the use of quotes based on oil prices from over-the-counter transactions at the St. Petersburg Exchange. However, the Ministry of Finance raised concerns about its representativeness, prompting a delay in switching to exchange indices until 2025.
The St. Petersburg Exchange has promoted the idea of alternatives to global price indicators for tax calculations in the oil sector over the past several years. In January 2025, a National Exchange Price Agency (NEPA) was established based on the exchange. It forms price indices and indicators based on data gathered from exchange trading and the registration of over-the-counter transactions, as well as information from market participants. At that time, the exchange proposed using its indices for calculating oil taxes but received a refusal from the Ministry of Finance.
Currently, the St. Petersburg Exchange is not engaged in discussions with the government or the Ministry of Finance regarding the use of exchange price data for oil extraction taxation, a representative from the trading platform disclosed to RBC.
In the conclusion of the draft law from the Institute of Legislation and Comparative Law under the government, the need for amendments is justified by the reduced risks to budget revenues. It notes that the changes are targeted and ensure the continuity of administrative procedures for calculating export duties and tax bases, while also maintaining regulatory predictability for all market participants by preserving existing payment calculation methods.
RBC has sent inquiries to Argus, the government press service, and the Ministry of Finance.
Why Indices from Argus are Important to the Ministry of Finance
The Ministry of Finance faces the task of minimizing risks of losses to oil and gas revenues when calculating prices. As noted by Open Oil Market CEO Sergey Tereshkin, the Argus methodology is the most recognized in the industry and, crucially for the Ministry of Finance, it is neutral regarding the influence of oil producers, traders, and other market participants. Furthermore, Argus data is based on a large number of spot market transactions, allowing it to reflect the reality of the market.
Regarding the Urals delivery futures at the St. Petersburg Exchange, Tereshkin adds that the trading liquidity for this instrument is insufficient for it to be perceived as a reliable source of market data.
In the absence of the proposed amendments, the Ministry of Economic Development will lack official data for calculating budget payments, explained Vladimir Gruzdev, Chairman of the Association of Lawyers of Russia. “The exception made by the legislator regarding the start of the ban gives government authorities time to prepare national market monitoring indicators. It is expected that after September 1, 2028, government bodies will be able to utilize research conducted without the participation of foreign organizations,” he noted.
Since 2023, the Center for Price Indices (CPI) has also been operational in Russia, publishing indices based on similar specifications used in Russian legislation for taxes, stated CPI CEO Natalia Porokhova. The Center operates in accordance with international agency practices and is undergoing accreditation with the Central Bank of Russia. The methodologies of the CPI have been reviewed by federal government bodies in State Duma committees.
According to Porokhova, the main obstacle to substituting quotes from the UK agency is legislative norms that have enshrined its monopoly in Russia. “Russia has already undergone the path of import substitution in similar sectors where the inertia of the global payment, rating, and reinsurance infrastructure complicates the development of national players. It is evident that changes will occur because, since 2022 and especially in the last month, the system of global price standards has been breaking down,” she adds.
However, challenges remain in establishing the main price standard for Asia—the Dubai index. The Urals oil is increasingly less dependent on Brent as it is supplied to Asian markets. This will inevitably lead to changes in oil pricing references, and it is important not to maintain the inertia of linkage in Russian legislation, according to Porokhova. She emphasizes that Argus itself originated during the oil shocks of the 1970s, when oil trading underwent radical changes. The oil shocks of 2026 are also transforming trade and providing Russia with a chance to create its own pricing benchmarks.
Source:
RBC
