Moscow, 22 November 2025 (Agencies): Russia’s flagship Urals crude oil has plunged to its lowest level in nearly three years, dropping to $36.61 per barrel at the Black Sea port of Novorossiysk. The sharp decline follows the announcement of new U.S. sanctions targeting Russia’s two largest oil producers, Rosneft and Lukoil, set to take effect this week.
According to data from Argus Media and Bloomberg, Urals crude prices slumped on Thursday before recovering slightly on Friday. The fall marks the weakest trading level since March 2023, when Russian oil collapsed in the wake of the European Union’s embargo on Russian crude imports.
The sanctions have prompted Russia’s key buyers, China and India, to seek alternative suppliers to avoid secondary sanctions. As a result, the discount of Urals relative to the international Brent benchmark widened to an average of $23.52 per barrel, further eroding Russia’s oil revenues.
This is the second time in 2025 that Urals has exceeded a $15 discount to Brent, echoing the steep price gaps seen in 2022 and early 2023, when discounts surpassed $30 per barrel following Russia’s invasion of Ukraine and the EU’s oil embargo.
The widening discount is expected to weigh heavily on Russia’s budget, where oil revenues remain the largest source of income for the Kremlin. In October, Russian oil revenues collapsed by 27% year-on-year, pressured by falling international prices, intensified sanctions, and a stronger ruble.
Analysts warn that the latest sanctions could deepen Russia’s fiscal strain, undermining its ability to finance the war in Ukraine and forcing Moscow to offer even steeper discounts to retain buyers in Asia.