- UK to phase out the import of Russian oil during the course
of the year in response to illegal invasion of Ukraine
- Government establishes a new joint Taskforce with industry to
work together on an orderly transition
- Move will increase the growing pressure on Russia’s economy
by choking off a valuable source of income
The UK will phase out imports of Russian oil in response to
Vladimir Putin’s illegal invasion of Ukraine by the end of the
year, the Business Secretary has confirmed today (8
March).
The phasing out of imports will not be immediate, but instead
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 working closely with the US, the EU and other partners
to end our dependence on Russian hydrocarbons in response to
Russian aggression in Ukraine, recognising the different
circumstances and transition timelines.
The import of Russian oil makes up 44% of Russian exports and 17%
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% 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 including the Netherlands, Saudi Arabia,
and USA.
Whilst this transition takes place, the Government recognises the
need to continue to import Russia oil in the meantime as we work
to this aim. This will help ensure continuity in our supply and
protect consumers.
Prime Minister said:
“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.
“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.”
Business & Energy Secretary said:
"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.
“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."
This significant move will 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.
Russian oil is already being ostracised by the market, with
nearly 70% of Russian oil currently struggling to find a buyer,
and in a competitive global market demand will quickly be met by
alternative suppliers. On 1 March Russian ships were banned from
UK ports and authorities were granted new powers to detain
Russian vessels.
The UK is not dependent on Russian natural gas, making up less
than 4% of our supply. Ministers are also exploring options to
reduce this further. The Prime Minister confirmed that the
Government will set out an energy strategy to set out the UK’s
long term plans for greater energy security, including both
renewable and domestic oil and gas supplies.
NOTES TO EDITORS
- The UK benefits from significant domestic production of oil
and gas. More than two thirds of our road fuel comes from
domestic production.
- Russian oil is already being ostracised by the market, with
nearly 70% of Russian oil currently struggling to find a buyer,
and in a competitive global market demand will quickly be met by
alternative suppliers.
- Russia produces only a fraction of the fuel products
currently imported to the UK, with the vast majority coming from
reliable suppliers like the USA, Netherlands, Sweden, Belgium and
Saudi Arabia.
- Russian oil imports as a % of total demand (DUKES 2020):
- Petrol - 0%
- Jet fuel - 5%
- Heating oil - 0%
- Diesel - 18%
- Gas Oil (e.g. red diesel) - 1%
- Fuel oil - 0%
- All oil imports 8%
