The UK government is expected to announce a ban on all Russian oil, in a plan that will be phased in over the coming months, as Boris Johnson ramps up sanctions against Russia following the country’s continued invasion of Ukraine.
The move will be in tandem with US’ ban and will apply to all Russian refined products but not gas, according to Bloomberg who cited an anonymous person familiar with the plans.
NEW: Understand the U.K. government will make an announcement today on how it intends to reduce Russian oil and gas imports over time
Announcement expected around 4pm
— Alex Wickham (@alexwickham) March 8, 2022
The anticipated eventual ban will further pile on upward pressure on energy prices and squeeze household budgets further, especially given the rising national insurance rates in April and expected interest rate hikes throughout 2022.
From 2019 to 2020 Russian oil made up approximately 12% of the UK’s crude oil and refined products imports, Bloomberg said.
This sanction will add to several ones already issued by the West, which targeted Russian banks and tycoons in an attempt to destabilise and bring down Putin’s economy.
Earlier, Bloomberg reported that the US will announce a ban on imports of Russian oil today.
The newswire suggests that Joe Biden has decided to go ahead without Europe, although there was reportedly a consultation between the parties.
According to the American Fuel and Petrochemical Manufacturers trade association, around 61% of America's oil came from neighbouring Canada in 2021, significantly higher than the 3% that came from Russia in the same year.
Imports from Mexico accounted for about 10% of America's oils needs, with 6% coming from Saudi Arabia.