SUBSCRIBER NOTE: Platts proposes to launch full calendar month Russian domestic crude netbacks

Platts proposes to launch a series of new Russian domestic crude netbacks which reflect the Russian crude export duty on the basis of a calendar month.

The full calendar month assessments will be in line with the prevailing practice for formula-based contracts.

Platts intends to start publishing netback values for Urals crude oil, FIP at the Surgut supply point in Western Siberia, as well as netback values for 10 other delivery points inside Russia based on the pipeline tariff differential versus Surgut. In addition to the Surgut netback, Platts intends to publish netback values for Moscow, Nizhnevartovsk, Samara, Volgograd, Novorossiisk, Nizhniy Novgorod, Ryazan, Ufa, Yaroslavl and Primorsk.

The primary Surgut netback value will be derived by subtracting local transportation and trans-shipment costs as per the existing netback, but the export duty will be applied over the course of the calendar month.

Platts would continue to publish its current crude netbacks which start reflecting the export duty for the following month as soon as it is announced by Russia's finance ministry and which are followed as a gauge on the spot trading market.

Platts would relabel these existing crude netback assessments as "Mid-month export duty applied" under the existing header of "Russian domestic crude oil assessments and netbacks (Rb/mt)." Platts would label the new calendar month netback assessments as "Full calendar month export duty applied" under the same existing header of "Russian domestic crude oil assessments and netbacks (Rb/mt)."

Please send feedback and comments to europe_products@platts.com and pricegroup@platts.com by July 31.

Please provide a clear indication if comments are intended for publication by Platts for public viewing.

Platts will consider all comments received and will make these comments available on request.