• 22/04/2024 18:42

Russian oil, despite sanctions, ends up in the UK due to a “loophole” in refining rules – media

Thanks to this, the Kremlin received more than £100 million in tax revenue.

Russian oil, despite sanctions, ends up in the UK due to

Millions barrels of fuel made from Russian oil are still imported into the UK, despite sanctions imposed due to the war in Ukraine.

This is reported by the BBC, citing analysis from, in particular, the Center for Energy Research and clean air (CREA).

Refining rules allow this loophole: for example, Russian oil is refined in India and sold to the UK.

“This is not illegal and does not violate the British ban on Russian oil, but critics say it undermines sanctions aimed at limiting Russia’s military funds,” the material says.

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The UK government denies importing Russian oil from 2022. A Downing Street spokesman said internationally accepted “rules of origin” stipulate that crude oil, once refined in another country, is classified for trading as “refiner country oil”.

India and China, which are not have imposed sanctions on the Kremlin, can legally import Russian crude oil and refine it into petroleum products such as aviation fuel. and diesel. They then export these products to the UK and EU.

“The problem with this loophole is that it increases demand for Russian oil and allows for higher sales volumes and higher prices, which increases the funds that the Kremlin’s war chest receives,” said CREA spokesman Isaac Levy, who oversees liaison issues. Europe and Russia and energy analysis.

Last year, Russia transported record volumes of oil to China, – Reuters

Global Witness estimates that the UK imported around 5.2 million barrels of petroleum products made from Russian crude oil in 2023. The majority of imported fuel – 4.6 million barrels – was aviation fuel, which the team's researchers estimate was used on “one in 20 flights” in the UK.

The company notes that although “the British government “Sil condemns the war in Ukraine, he remains complicit in the sale of Russian oil, maintaining this “loophole” in open oil refining.”

According to CREA, during the first 12 months of the Russian oil ban from December 2022, the UK imported petroleum products derived from Russian crude oil worth around £569 million.

Reports from both groups claimed that such rules refining indirectly provided the Kremlin with more than £100 million in tax revenue.

The bulk of imports came predominantly from three refineries in India – Jamnagar, Vadinar and New Mangalore – as well as nine in other countries, including China.< /p>

CREA and Global Witness' analysis was based primarily on analysis of oil shipment data from oil analytics firm Kpler, while price data was based on Eurostat data. “Both CREA and Global Witness said the two studies were based on assumptions and acknowledged that there were obstacles and limitations to analyzing such trade,” writes the BBC.

In January last year, trade statistics showed that that Londo did not import fossil fuels from Russia. In 2021, imports of gas, oil and coal from the Russian Federation to the UK amounted to 4.5 billion pounds sterling.

  • In 2023, the Kremlin earned a quarter less from energy resources than in 2022 – 100 billion dollars, Bloomberg calculated. However, oil and gas sales are still the main source of income for the Russian budget. It allows the Putin regime to stay afloat and even increase military spending. Read more in the LB.ua article “Money for war: Russia’s earnings have decreased in 2023. But new sanctions are needed.


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