Update to the methodology for pricing exported crude oil: replacement of Urals quotations with the KEBCO spread

By Resolution No. 763 of the Government of the Republic of Kazakhstan dated 26 August 2026, amendments were introduced to the Rules (Methodology) for pricing of exported crude oil and gas condensate, approved by Resolution No. 647 of the Government of the Republic of Kazakhstan dated 21 September 2021 (the “Methodology”). 

The amendments have entered into force with retroactive effect from 1 January 2026 and affect the determination of transaction prices for crude oil exports through certain routes. 

What are the key changes?

The key change is the removal of Urals quotations and spread from the pricing formulas for the Black Sea and Baltic routes and the transition to the KEBCO (Kazakhstan Export Blend Crude Oil) spread. 

1. Transition from the Urals spread to the KEBCO spread 

The principal amendments were made to paragraphs 6 and 11 of the Methodology, which regulate pricing for the Black Sea and Baltic routes. Quotations of the North Sea benchmark have been retained, including Brent (Dated), North Sea Dated and BFOE; however, the Urals quotations and spreads previously used have been replaced with the KEBCO spread. 

For shipments through the Black Sea route (Atyrau-Samara), the KEBCO CIF Augusta spread is applied, while the KEBCO CIF Rotterdam spread is applied to exports through the Baltic route. 

Under the amended Methodology, the KEBCO spread is determined on the basis of the following sources of information: 

• Platts: KEBCO (CIF Augusta and CIF Rotterdam); 
• Argus Media: KEBCO differential (CIF Augusta) for both routes; 
• Refinitiv: KEBCO differential to BFOE. 

2. Indirect application related to Black Sea routes

The amendments are also relevant to the Aktau-Makhachkala-Novorossiysk and Aktau-Baku/Sangachal-Batumi routes. Although these routes are not expressly referred to in the amendments, the pricing formulas applicable to them are based on paragraph 6 of the Methodology. Accordingly, the transition to the KEBCO spread also effectively applies to these routes. 

Points requiring particular attention

• Urals quotations remain in the Methodology for shipments through Caspian Sea ports on FOB terms and for exports through the Druzhba oil pipeline.
• As the amendments apply to obligations arising from 1 January 2026, shipments made during the first half of 2026 should also comply with the updated Methodology. In light of the amendments, we recommend reviewing existing export contracts and, where necessary, bringing them into compliance with the updated requirements of the Methodology.

How EY can help

EY’s transfer pricing team is ready to discuss the impact of these changes on your company’s operations and assist in analyzing the relevant export transactions.