Along with U.S. President Joe Biden banning Russian oil imports, the UK opted to phase out oil imports from Russia in response to Vladimir Putin’s illegal invasion of Ukraine.
The phasing out of imports will not be immediate as the deadline for a full stop on Russian oil imports is set for the end of the year. This allows the UK more than enough time to adjust supply chains, supporting industry, and consumers.
The government will work with companies through a new Taskforce on Oil to support them to make use of this period in finding alternative supplies. The UK is also working closely with the U.S., the EU, and other partners to end its dependence on Russian hydrocarbons in response to Russian aggression in Ukraine, recognizing the different circumstances and transition timelines.
The import of Russian oil makes up 44 percent of Russian exports and 17 percent of federal government revenue through taxation – this move steps up the international pressure on Russia’s economy.
In a competitive global market for oil and petroleum products, demand can be met by alternative suppliers. We will work closely with international partners to ensure alternative supplies of fuel products.
Russian imports account for 8 percent of total UK oil demand, but the UK is also a significant producer of both crude oil and petroleum products, in addition to imports from a diverse range of reliable suppliers beyond Russia.
While this transition takes place, the government will need to continue to import Russian oil in the meantime until it is completed. This will help ensure continuity in our supply and protect consumers.
“In another economic blow to the Putin regime following their illegal invasion of Ukraine, the UK will move away from dependence on Russian oil throughout this year, building on our severe package of international economic sanctions,” Prime Minister Boris Johnson said.
“Working with industry, we are confident that this can be achieved over the course of the year, providing enough time for companies to adjust and ensuring consumers are protected,” Johnson added.
“Unprovoked military aggression will not pay, and we will continue to support the brave people of Ukraine as they stand up to tyranny, building on our existing sanctions that are already crippling Putin’s war machine,” Business and Energy Secretary Kwasi Kwarteng stated.
“We have more than enough time for the market and our supply chains to adjust to these essential changes. Businesses should use this year to ensure a smooth transition so that consumers will not be affected,” Kwarteng concluded.
A statement by the government claimed that this move would increase the growing pressure on Russia’s economy by choking off a valuable source of income and hitting its ability ‘to impose further misery on the Ukrainian people.’
The elimination of oil imports is in addition to existing trade, financial, and personal sanctions already imposed by the UK against Putin’s regime and those who support him in his war against Ukraine.
According to the UK government, Russian oil is already being ostracized by the market, with nearly 70 percent of Russian oil currently struggling to find a buyer, and in a competitive global market, demand will quickly be met by alternative suppliers. On March 1, Russian ships were banned from UK ports, and authorities were granted powers to detain Russian vessels. France for example already seized the Amore Vero yacht owned by Rosneft CEO Igor Sechin.