UK Pledges To Phase Out Russian Oil By Year End

The human tragedy that is unfolding as Russia’s invasion of Ukraine continues will create a terrible toll. The economic consequences of the war are already starting to have a worldwide impact too. One of the most immediate effects was a steep increase in the price of oil, which was already rocketing upwards even before the latest turmoil began.

Russia is the world’s third biggest producer of oil and gas, after the USA and Saudi Arabia. The UK, the US, and Canada have all agreed to ban Russian oil imports as part of a package of sanctions imposed on the country. The UK currently sources about 5-8% of its oil from Russia, but it is seeking alternative suppliers, and will phase out imports by the end of 2022.

The ongoing uncertainty means that the global oil prices have soared, causing domestic customers to pay more for heating oil, diesel, and petrol. Prime Minister Boris Johnson recently visited Saudi Arabia, where it is thought he raised the question of the Middle East increasing its oil supplies to ease pressure on bills for consumers.

The prime minister's official spokesman commented: "We will be speaking to the Saudis about a range of issues, not just energy supply. Diversifying our energy supply is important, as is boosting renewable energy. There are no quick fixes but we do want to reduce the volatility and bring prices down."

The International Energy Agency (IEA) have agreed to release 60 million barrels of oil from strategic national reserves, but this is not enough to have a significant impact on oil prices. Nations such as Germany and France rely on Russia to supply about 40% of their oil and gas, so it will be much more challenging for them to ban Russian imports.

However, the EU is still seeking ways to diversify its energy sources, and increase oil supplies from elsewhere in the world.

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