UK to phase out import of Russian oil by end of 2022 in further invasion sanction

The UK will phase out the import of Russian oil and oil products by the end of the year, the Business Secretary has announced.

The move announced by Kwasi Kwarteng was matched by US President Joe Biden as the West looks to tighten the squeeze on the Russian economy following Moscow’s invasion of Ukraine.

In a statement posted on Twitter, the Business Secretary said: “This transition will give the market, businesses and supply chains more than enough time to replace Russian imports – which make up 8% of UK demand.”

He urged businesses to “use this year to ensure a smooth transition so that consumers will not be affected”.

A new taskforce will also be established to help firms find “alternative supplies” before the ban comes into force by 2023, the Cabinet minister pledged.

Mr Kwarteng added: “The UK is a significant producer of oil and oil products, plus we hold significant reserves.

“Beyond Russia, the vast majority of our imports come from reliable partners such as the US, Netherlands and the Gulf.

“We’ll work with them this year to secure further supplies.

“The market has already begun to ostracise Russian oil, with nearly 70% of it currently unable to find a buyer.

“Finally, while the UK is not dependent on Russian natural gas, 4% of our supply, I am exploring options to end this altogether.”

Making the announcement in Washington only minutes after Mr Kwarteng, Mr Biden said the US opting to ban Russian oil would be a “powerful blow” to the war being raged by President Vladimir Putin on Kyiv.

But he warned Americans that the sanction would have ripple effects at home, telling them that “defending freedom is going to cost”.

Brent crude rose 7% to 131.95 dollars per barrel on Tuesday after media reports surfaced that the US was contemplating an oil ban sanction.

A year ago, Brent was trading at around 61 dollars per barrel.

The Prime Minister suggested that diesel prices could be set to rise further in Britain after the announcement, with prices at the pumps already having soared following Moscow’s attack on Kyiv.

But Boris Johnson said the UK was “less exposed” than some European nations when it came to restricting Russian oil.

The European Union imports more than a quarter of its oil from Russia, but Mr Johnson predicted the UK Government’s decision “won’t affect” domestic businesses.

Speaking to broadcasters in London, Mr Johnson said: “The UK is less exposed (than European allies) but clearly we do have diesel that comes from Russia and we can’t move overnight.

“But we can certainly do it and we can do it in a way that doesn’t disrupt supply, that ensures we have substitute supplies on stream in an orderly way and in a timetable that won’t affect UK business, won’t affect UK manufacturing, road haulage or other parts of our industry but will punish the regime of Vladimir Putin.”

He accepted that the decision to target Moscow’s oil would not hit the Kremlin’s regime immediately, with Ukraine continuing to face assault, but said it would add to the “extreme” sanctions already levied.

“The Russian stock market hasn’t opened for almost a week, the rouble has tanked and the noose is tightening,” the Prime Minister added.

No UK petrol demand comes from Russia, nor heating or fuel oil, according to figures shared by the Department for Business, Energy and Industrial Strategy (Beis) and compiled by Digest of UK Energy Statistics (Dukes) 2020.

However, 18% of total demand for diesel and 5% of jet fuel comes from Russia.

Beis officials said the ban, with the import of Russian oil making up almost half of Russian exports and 17% of federal government revenue through taxation, would “choke off a valuable source of income” for the Kremlin.

The decision came only shortly before Ukrainian president Volodymyr Zelensky made a “historic address” by video link to MPs about his country’s plight.