Russian Oil Import Ban — House of Commons, 2022-03-09
Topic: International Affairs
Kwasi Alfred Addo Kwarteng (Conservative, Centre-right): With permission, I would like to make a statement on the UK’s phase-out of imports of Russian oil in response to Vladimir Putin’s brutal and illegal invasion of Ukraine First, I want to say what a privilege it was for all of us to hear President Zelensky’s historic address to the House yesterday. I am sure that all Members will join me in thanking him once again for his inspiring words and great leadership. It is with those words in mind that I come here today The UK joins key allies, including the United States, in halting the import of Russian oil, which makes up 44% of Russian exports and 17% of the Russian Government’s revenue through taxation. This action follows the most punishing set of sanctions that the British state has ever imposed on a G20 nation. Our trade, financial and personal sanctions are having an effect on the Russian economy. As I speak, the rouble has now fallen by nearly 42%, and the Moscow Exchange’s stock trading has been shut since 25 February. The British Government have sent a clear message to Putin’s regime and to those who support him in his war against Ukraine It is important to remember that Russia produces only a fraction of the fuel products currently imported in the UK. In a competitive global market for oil and petroleum products, demand can be met by alternative sources of supply. As a result of international revulsion at Putin’s invasion, Russian oil is already being excluded from much of the market, and currently it is trading at quite a sharp discount from other crude oil sources We want to go further. Yesterday I set out that the UK will be phasing out imports of Russian oil during the course of the year. This transition will give the market, businesses and supply chains more than enough time to substitute Russian imports. Businesses should use this year to ensure as smooth a transition as possible, so that consumers will not be affected. The Government will work with companies through a new taskforce on oil to support them to make use of this period in finding alternative suppliers. Yesterday I spoke with businesses, unions and representatives from the sector, and of course I and officials in the Department for Business, Energy and Industrial Strategy will continue to engage with and support British business Although Russian imports account for 8% of total UK oil demand, we should remember that the UK is a significant producer of crude oil and petroleum products. We participate in a global market for those products and we have resources in place in the unlikely event of supply disruption. Over the course of the year, the taskforce that we have set up will work closely with international partners, including the USA, the Netherlands and the Gulf to ensure alternative supplies of fuel products. Last week I addressed the International Energy Agency and tomorrow we will have an extraordinary meeting of the G7 Energy Ministers to discuss further steps Although businesses should do everything they can to secure oil from alternative sources, it is important to emphasise that they will still be able to import Russian oil during this transition period. These measures target oil-related products imports only. The UK is not dependent on Russian natural gas, which makes up less than 4% of our supply. However, I will be exploring options to end that altogether I want to make it clear to the House that we must end our dependency on all Russian hydrocarbons. In the meantime, we need more investment in North sea oil and gas production as we make the move to cheaper, cleaner power. Turning off domestic production at this moment, as some are calling for, would be completely the wrong thing to do. We are not going to do that. The Prime Minister has also confirmed that the Government will set out an energy strategy to explain the UK’s long-term plans for greater energy security, including renewable and nuclear power, building on our 10-point plan This measure to phase out Russian oil, and those being taken by our allies, will move the west away from dependency on Russian oil. It will take us on a road to building a stronger and more resilient British energy system. It will increase the growing pressure on Russia’s economy and, ultimately, hamper Russia’s ability to impose further misery on the Ukrainian people.