PRIMORSK, Russia — The for Russia’s Urals crude oil against Brent reached $28 per barrel on a free-on-board basis from ports in Primorsk and Ust-Luga during February 9-13, according to Argus data reported by Kommersant newspaper. That marks the deepest spread since April 2023.

The outright Urals price for those five days fell $1.77 to $42.28 per barrel. Separate Reuters data showed the FOB price in Primorsk at $44.14 on Wednesday, with Dated Brent at $72.45 on Thursday — again pointing to a roughly $28 .

Western sanctions over Russia’s war in Ukraine have hammered oil revenues, which fund much of the government’s budget. Finance Ministry figures show state income from oil and gas dropped 24% in 2025 to the lowest since 2020. Dollar oil prices weakened even as the ruble strengthened against the dollar.

Exports to India, Russia’s second-biggest buyer after China, have cratered. Russian sellers slashed prices to lure demand after the U.S. cut tariffs on Indian goods in exchange for New Delhi halting Russian oil purchases. Kommersant cited that shift as a key driver.

Icy Baltic Sea conditions drove up freight rates, too, squeezing Urals pricing further. Ships faced delays and higher costs handling frozen waters near Primorsk and Ust-Luga, two primary export hubs.

Urals, Russia’s main export blend, has struggled since the 2022 Ukraine invasion prompted G7 and EU bans on most Russian oil trade. Moscow rerouted flows to Asia, but buyers like India now demand steeper s amid global oversupply and softer demand.

The price slump adds pressure on President Vladimir Putin’s war chest. Oil and gas account for about 40% of federal budget revenue in recent years. Lower realizations mean tougher choices on spending for military operations and social programs.

Traders expect the to persist without policy shifts. India’s refiners, including Reliance Industries and Nayara Energy, have cut Russian imports sharply since early 2026. China remains steady, but its state buyers also push for bargains.

Russia’s response includes output cuts aligned with OPEC+ agreements. The group, which includes Moscow, pledged deeper reductions in December 2025 to support prices. Yet Urals lags Brent by historic margins.

Analysts track weekly Argus assessments for Urals FOB quotes. The February 9-13 period reflected spot trades amid thin volumes. Later data may show if s hold as weather eases and buyers adjust.

Moscow officials downplay the impact. Energy Minister Pavel Sorokin said last month that budget forecasts already factor in sanctions. Still, the Finance Ministry trimmed its 2026 oil price assumption to $60 per barrel from $65.