Is The UK Really Reducing Oil Sanctions On Russia?

Has Keir Starmer really cut back on the UK’s oil sanctions against Russia?

The government is facing intense backlash after reports that Labour decided to water down its penalties against Moscow in response to the emerging oil crisis.

But ministers have robustly rejected accusations that they are easing up on Vladimir Putin. Here’s what you need to know.

Europe has been trying to wean itself off cheap Russian oil imports to punish Putin after his 2022 invasion of Ukraine.

The UK has been leading that charge as a prominent ally to Kyiv. It has repeatedly slapped sanctions on Russian industry to damage its economy and war machine.

It was revealed billions of barrels of fuel were still being imported into the UK through a loophole in the sanctions last October.

The Centre for Research and Clear Air estimated £1.8bn of oil products – made from Russian crude and transported via third countries – imported to the UK since December 2022.

So Labour announced plans back in October to impose a fresh ban on UK imports of diesel and jet fuel made from Russian oil in third countries.

However, the government is now having to deal with a decline in fuel supplies.

The US’s ongoing conflict in Iran is squeezing global supplies due to the effective blockade of the Strait of Hormuz.

More than half of Europe’s jet fuel is transported through the major shipping lane.

Iran’s disruption of that supply means jet fuel prices are almost double what they were before Donald Trump started the war in late February.

There were fears Labour had chosen to prioritise the supply jet fuel over its support for Ukraine.

Tory leader Kemi Badenoch accused the government of “choosing to buy dirty Russian oil” during prime minister’s questions.

She claimed Starmer was “losing his moral compass by backsliding on Ukraine”.

Even Labour MP Emily Thornberry, chair of the Foreign Affairs Select Committee, condemned the government.

She told the BBC: “We’re talking about our allies in Ukraine who have been fighting a war bravely against Russia for years and years with our support, and they have looked to Britain as one of their most important allies. People feel very let down.”

The UK is still issuing a ban on maritime transportation of Russian LNG and related services.

However, the government now plans to “phase in” some of those sanctions in the coming months to mitigate the impacts of the Iran war.

They are introducing a temporary, time-limited licence which means the ban will not come in until January 1.

That licence will still be reviewed regularly, according to the government, but ministers hope that slow approach will reduce instability caused by the Middle East conflict.

The government has rejected claims that this is effectively a waiver on sanctions, like those introduced by the White House earlier this year.

Business and trade minister Chris Bryant told MPs: “We definitely could have communicated this better.”

He added that this policy lies across the Foreign Office and the department for Business and Trade.

“There’s been a bit of miscommunication between departments, and that is entirely my fault and nobody else’s. If anybody wants to have a go, they can just have a go at me,” he said.

“Our sanction regime today was tougher today than it was yesterday or last week,” the minister insisted.

The UK is still a leading force in the international goals to pressure Russian economy.

The country signed a G7 statement reaffirming its “unwavering commitment” to impose “severe costs” of Russia on Tuesday.

The sanctions commissioner for Ukraine Vladyslav Vlasiuk said he understood the “rationale behind the UK’s decision”.

However, he said: “Our concern relates specifically to temporary exemptions that may still generate additional revenues for Russia’s war machine.”

Dmyro Lytvyn, communications adviser to Ukrainian president VOlodymyr Zelenskyy also expressed concern over the policy.

He said there was a “highly active communication under way between our diplomats” to understand the new plan.