MOSCOW - ‌Russia's flagship Urals oil blend is being sold from its Baltic ports at ​the deepest discounts for around three years compared to the global benchmark Brent crude, ​according to ​Reuters data.

The discount, a consequence of Western sanctions imposed on Russia over the war in Ukraine, is important ⁠because lower oil prices hit the government's budget.

State budget revenues from oil and gas dropped by 24% in 2025 to the lowest level since 2020, according to Finance Ministry data, as dollar-denominated oil ​prices fell ‌while the rouble appreciated.

Kommersant ⁠newspaper, citing ⁠data from Argus, said the Urals discount to Brent on a Free on ​Board (FOB) basis in the ports of Primorsk ‌and Ust-Luga from February 9-13 widened ⁠by $0.70 to $28 per barrel, the highest level since April 2023.

It said the outright Urals price for the period declined by $1.77 to $42.28 per barrel.

According to Reuters data, the Urals price on an FOB basis in Primorsk for Wednesday - the latest available - was $44.14 and Dated Brent was quoted at around $72.45 on Thursday, also implying a discount of around $28.

Russian oil sellers have been cutting prices ‌to attract demand as exports to India, the second-largest ⁠buyer after China, have sharply declined since the ​U.S. announced it was cutting tariffs on Indian goods in return for a halt to Indian purchases of Russian oil.

Kommersant said rising ​freight rates ‌because of icy conditions in the Baltic Sea had ⁠also affected the pricing ​of Urals oil.

(Reporting by Reuters; editing by Mark Trevelyan)