The Ministry of Finance has prepared a draft law for submission to the State Duma that will allow the continued use of quotations from the international agency Argus for calculating oil taxes. RBC has reviewed a copy of the document. The draft law permits authorities to utilise these indices until 1 September 2028. Prime Minister Mikhail Mishustin has instructed that amendments be presented for consideration in the State Duma. A source close to the government confirmed to RBC that the draft law has been approved by the legislative activity commission within the government.
According to the existing law, from 1 March 2026, foreign companies and Russian legal entities with more than 20% foreign ownership will not be allowed to research commodity markets in Russia. The proposed amendments suggest exceptions for foreign organisations whose data is used in tax legislation. The amendments are intended to apply to legal relations that arose from 1 March.
The key beneficiary of these changes remains the UK-registered Argus. The proposal to retain the agency's quotations for calculating oil taxes came from the Ministry of Finance, as noted by Deputy Minister of Finance Alexey Sazanov on 19 March this year. As early as autumn 2025, Argus notified the ministry of the risks of reducing activities in Russia and requested regulatory adjustments.
The agency's quotations are used by the Ministry of Finance to calculate mineral extraction taxes and fuel dampers (budget compensation for the difference between export and domestic prices). The Ministry of Economic Development also employs this data when determining export duties.
Import Substitution of Indices
It was planned that starting in 2024, Russia would transition to its index for calculating oil taxes. Amendments to the Tax Code implied the use of a quotation based on the price of oil from over-the-counter transactions at the St Petersburg Exchange. However, the Ministry of Finance raised concerns over its representativeness and postponed the transition to exchange indices until 2025.
The St Petersburg Exchange has been promoting the idea of an alternative to global price indicators for tax calculations in the oil sector for several years. In January 2025, the National Exchange Price Agency (NEPA) was established on the basis of the exchange. It generates price indices and indicators based on data obtained from exchange trades and registered OTC transactions, as well as information from market participants. At that time, the exchange proposed using its indices for calculating oil taxes but received a rejection from the Ministry of Finance.
Currently, the St Petersburg Exchange is not engaged in any discussions with the government or the Ministry of Finance regarding the use of exchange price data for taxation purposes, an exchange representative told RBC.
In the draft law's conclusion from the Institute of Legislation and Comparative Law under the government, the necessity for these amendments is explained by the reduction of risks to the budget's revenues. It is noted that the changes are of a targeted nature, ensuring the continuity of administrative procedures for calculating export duties and tax bases, while maintaining predictability in regulation for all market participants through the preservation of existing payment calculation methodologies.
RBC has sent a request to Argus, the government press service, and the Ministry of Finance.
Why Argus Indices Are Important to the Ministry of Finance
The Ministry of Finance faces the challenge of minimising the risks of losses in oil and gas revenues when calculating prices. As noted by Sergey Tereshkin, CEO of the Open Oil Market fuel marketplace, the Argus methodology is the most recognised in the industry, and crucially for the Ministry, it is neutral with respect to the influence of oil producers, traders, and other market participants. Furthermore, Argus data is based on a large number of transactions in the spot market, allowing it to reflect the true market situation.
As for the Urals delivery futures on the St Petersburg Exchange, the trading liquidity for this instrument is insufficient for it to be considered a reliable source of market data, Tereshkin adds.
In the absence of the proposed amendments, the Ministry of Economic Development will lack official data for calculating budget payments, explained Vladimir Grudzev, Chairman of the Russian Lawyers Association. "The exception made by the legislator regarding the start of the prohibition provides government authorities with time to prepare national monitoring indicators for the commodity market. It is anticipated that after 1 September 2028, government bodies will be able to use studies conducted without the involvement of foreign organisations," he stated.
Since 2023, the Centre for Price Indices (CPI) has also been operational in Russia. It publishes indices based on similar specifications used in Russian legislation for taxation, reported CPI's General Director Natalia Porokhova. The Centre operates in accordance with the practices of international agencies and is undergoing accreditation by the Bank of Russia. The methodologies of the CPI have been reviewed by federal government bodies in the State Duma committees.
According to Porokhova, the main obstacle to the substitution of indices from the UK agency lies in the legislative norms that have entrenched its monopoly in Russia. "Russia has previously undergone a process of import substitution in similar sectors, where the inertia of global payment, rating, and reinsurance infrastructures complicates the development of national players. It is clear that changes will occur here, especially since, from 2022 onwards and particularly in the last month, the system of global price benchmarks is being dismantled," she adds.
Additionally, there are challenges associated with forming the primary price benchmark for Asia—Dubai. Urals oil is increasingly less dependent on Brent, as it is supplied to Asian markets. This will inevitably lead to a change in oil price benchmarks, and it is important not to maintain the inertia of attachment in Russian legislation, Porokhova believes. She also points out that Argus itself emerged during the oil shocks of the 1970s, a period when oil trading underwent significant change. The oil shocks of 2026 are similarly altering trade dynamics and provide an opportunity for Russia to establish its own price benchmarks.
Source: RBC
