Page 13 - Gi_April2022

UK TO PHASE OUT RUSSIAN OIL

IMPORTS BY END OF 2022

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,”
Johnson said in a statement.
“Working with industry, we
are confident that this can be
achieved over the course of the
BRITAIN WILL PHASE out imports year, providing enough time for
of Russian oil and oil products by companies to adjust and ensuring
the end of 2022, Prime Minister consumers are protected.”
Boris Johnson said in March, Business Minister Kwasi Kwarteng
joining other nations including called on businesses to use the
the United States in reducing their rest of this year to ensure a smooth
energy dependency on Russia. transition and said the government
In response to President Vladimir would set up a taskforce to work with
Putin’s decision to invade Ukraine, firms to find alternative suppliers.
Britain and others are seeking ways “This transition will give the
to deprive Moscow of income and market, businesses and supply
cut their own use of Russian energy chains more than enough time to
exports by becoming more self- replace Russian imports – which
sufficient, reports Reuters. make up eight per cent of UK
“In another economic blow to demand,” Kwarteng said on Twitter.

The UK’s diverse supply sources £90 billion in renewable energy since
include pipelines from the UK and 2012 to create one of the most reliable
Norway, interconnectors with the and diverse energy systems in the world.
continent, and three liquefied natural However, the more clean, cheap and
gas (LNG) terminals that provide Britain secure power the country can generate
with one of the largest LNG import at home, the less exposed the UK
infrastructures in Europe. Germany, for will be to expensive gas prices set by
example, has no LNG import terminals. international markets.
s the conflict between Russia However, the UK’s exposure A government spokesperson said: “It is
and Ukraine deepens, to volatile global gas prices has vital European countries on the continent
Europe and Russia’s long underscored the importance of cheap, reduce their reliance on Russian gas both
interdependence on one another clean energy to reduce the country’s through alternative supplies, including the
A for energy has become a critical reliance on fossil fuels. global liquefied natural gas (LNG) market
bargaining piece on both sides. Russia typically supplies 30-40 per – an increasingly important component
Gas and oil-rich Russia is linked to cent of Europe’s gas, meaning it still of the global energy supply chain – and
European energy markets through a wields huge influence over prices, accelerating the transition to net zero.
series of critical pipelines, the biggest which are already high. The UK’s market “This is a priority for our engagement
flowing through Ukraine. is closely connected to markets in with key international partners and
The UK government has stated that Europe, so a price rise in Germany or we continue to work alongside them to
it is confident the gas supply will not the Netherlands means British suppliers achieve this.”
be disrupted. It claims the current must pay more to get hold of it. The energy price cap has until
situation facing the UK is not a question In January, the US bank Goldman recently insulated millions of customers
of security of gas supply, but of high gas Sachs said it expected gas prices to be from volatile global gas prices during
prices set by international markets. twice as high as normal until 2025 and the winter months.
Unlike other countries in Europe, the that was before Russia launched its However, household energy bills are
UK is not dependent on Russian gas, attack on Ukraine. set to go up this month with even larger
which accounted for about four per cent Nor can the UK turn to stored price rises expected later in the year.
of the country’s supply in 2021. reserves of gas for relief from market Brent crude hit a 14-year high at the
The UK’s single largest source of prices, reports The Guardian. Storage beginning of March.
gas is from the UK Continental Shelf capacity is low by international On 3 February 2022, a new cap of
and the vast majority of imports come standards since British Gas’s owner £1,971 was announced, an increase of
from reliable suppliers such as Norway. Centrica shut down the Rough facility almost £700 for those on a standard
There are no gas pipelines directly off the coast of Yorkshire. default tariff paying by direct debit. For
linking the UK with Russia. The government states it has invested prepayment customers, the cap will

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