As a response to Russia’s invasion on Ukraine, the UK will phase out imports of Russian oil by the end of the year, government has confirmed.
“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,” said Prime Minister Boris Johnson.
According to the government, the import of Russian oil makes up 44% of Russian exports and 17% of federal government revenue through taxation. It is hoped the withdrawal of imports from the UK – among other countries – will step up pressure on Russia’s economy.
The phasing out will not be immediate, thus allowing the UK time to adjust supply chains. The government will work with companies through a new Taskforce on oil to support them and to make use if this period in finding alternative supplies.
“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,” added Business Secretary Kwasi Kwarteng.
The effects felt will likely be small, as Russian imports account for just 8% of total UK oil demand.
Two-thirds of the UK’s road fuel comes from domestic production. In terms of fuel products currently imported to the UK, Russia fall behind countries such as the US, the Netherlands, Sweden, Belgium and Saudi Arabia.
Ukraine government bans exports of grains
As the Russian invasion intensifies, Ukraine has today (Wednesday, March 9) decided to ban the export of several types of grain and other foodstuffs.
This will include rye; barley; buckwheat; millet; sugar; salt; and meat
The ban is expected to remain in place until the end of this year. Ukraine is one of the world’s largest grain exporters.
The country has already introduced measures to limit the export of wheat, corn, sunflower oil, poultry and eggs due to food security concerns as the war continues.
Hungary has also banned the export of grain due to rising market prices as a result of the Russian invasion of Ukraine.
