Putin signs law setting discount on Urals crude oil for tax calculations

MOSCOW, Feb 23 (Reuters) - President Vladimir Putin on Thursday signed a law fixing the discount on Urals crude oil for tax calculations, according to a document posted on the Russian government's website.

The law, passed by parliament last week, changes the oil price assumptions that Moscow uses to calculate its multi-billion rouble tax levy on oil exports, as it scrambles to cover a widening budget deficit due to Western sanctions.

The government said last week that the change would boost the state budget by 600 billion roubles ($8.2 billion) this year, but analysts said it would not be significant in narrowing the deficit.

Russia relies heavily on taxes on its oil and gas exports for its day-to-day spending, but revenues have fallen amid a European Union embargo and G7 price cap on Russia's crude and oil product sales.

The law sets the maximum discount for Russia's Urals blend compared with Brent crude for tax calculations at $34 a barrel in April, falling to $31 in May, $28 in June and $25 in July - in effect not far from current market prices for Urals crude.

Reporting by Reuters

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