The FOB discount consists of the cost of sea transportation (freight) of oil and a discount on the CIF basis, that is, at the port of arrival (India or China), explains Mikhail Zhuravlev, senior expert of the economic department of the Institute of Energy and Finance (IEF). In turn, the CIF discount consists of a discount for oil quality (Urals – sulfur oil) and a discount for political risks. For example, the current discount on FOB Primorsk includes the cost of freight to India in the amount of $ 6.3 per barrel, discounts for quality and political risks – $ 3-5 per barrel, and the rest, for example, currency conversion costs and traders’ margin – up to $ 3 per barrel, he estimates.