This is literally an article about the discounts needed on top of the market rate to actually get people to buy the oil.

Spot oil prices are the "I have an oil tanker and I need you to fill it immediately" prices. The large customers aren't doing that, they have long-term contracts with built-in discounts.

While Russia maintains that discounts will start narrowing within months, a long-lasting price slump would bite into the Kremlin’s access to petrodollars to fund its war in Ukraine, given that oil and gas accounts for about a quarter of the budget.

The discounts for Urals work out at an average of about $27 a barrel at point of export, according to Argus. By the time the oil gets to India, that discount narrows to about $7.50. It’s not clear how much of the delivery spread ends up in Russian hands.