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

Platts has decided to launch a series of new Russian domestic crude netbacks which reflect the Russian crude export duty on the basis of a calendar month. These new full-month netback assessments will begin on January 4, 2016.

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

Platts will be 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 will 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 corresponding calendar month.

Platts would also 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 will relabel these existing crude netback assessments to "Mid-month export duty applied" under the existing header of "Russian domestic crude oil assessments and netbacks (Rb/mt)". Platts will 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)".

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