MOSCOW, (Reuters) – Russia’s Urals crude oil grade has been trading at the lowest price to its global benchmark value since spring 2020. The decline was caused by growing tensions between Russia, the West, and Ukraine, said four Russian oil traders on Tuesday.

Moscow sent troops to the two separatist regions of eastern Ukraine on Monday after they were recognized as independent. This accelerated a crisis that the West fears will unleash a war, despite sanctions and the blockade of major Russian gas pipelines.

Monday’s offer included a discount of $4.60 per barrel for Urals oil cargoes from Baltic ports in March. This is the largest price reduction since spring 2020.

Two traders claim that a few March Urals cargoes from Russia’s Baltic ports were sold at an average discount of over $4 per barrel, while other cargoes are available at lower prices due to limited European demand.

Urals are a top choice, although buyers do take it. “They use geopolitical tensions to price arguments more often,” said a source from a prominent trading firm that is involved with Urals trading.

Caspian CPC blend oil from Yuzhnaya Ozereyevka, in the south, Russia, a product mainly sourced by Kazakh oil companies, is now trading at a date Brent minus $1.50 a barrel. This highlights the geopolitical impact on Urals oil prices.

CPC Blend was traded at a significant discount to Urals over the past few years.

Traders said that Norway’s Johan Sverdrup Oil, which has a similar quality to Urals, was also available at a discount of about $1.50 per barrel.

Traders stated that Brent is on the rise, which has led to record absolute Urals prices. This could help mitigate the effects of the large discount.

According to Refinitiv Eikon data, Tuesday’s price for Urals oil cargoes from Baltic ports reached $95 per barrel. This is the highest level since 2014.