Russian oil is reportedly finding its way into the UK through a loophole in the refinery process, despite sanctions imposed over the conflict in Ukraine. Research suggests that millions of barrels of fuel made from Russian oil are still being imported to the UK, raising concerns about the effectiveness of the sanctions.
According to reports, a loophole allows Russian crude to be refined in countries like India, and the resulting products are then sold to the UK. While this practice is not illegal and does not violate the UK’s ban on Russian oil, critics argue that it undermines the sanctions intended to restrict Russia’s war funds.
The UK government has denied any imports of Russian oil since 2022, citing internationally recognized ‘rules of origin’ which classify crude refined in another country as originating from the refining country for trade purposes.
The ban on importing oil and oil products from Russia, implemented by the UK and other Western countries, aims to reduce the revenue Moscow can generate from fossil fuels. However, two separate reports, shared exclusively with the BBC, reveal that the rules on refining create a loophole through which products made from Russian crude oil can enter the UK.
The Centre for Research on Energy and Clean Air (CREA) highlighted this ‘refining loophole,’ explaining that countries like India and China, which have not imposed sanctions on Russia, can legally import Russian crude and refine it into products such as jet fuel and diesel for export to the UK and the EU. According to Isaac Levi, head of CREA’s Europe-Russia policy and energy analysis, this loophole increases the demand for Russian crude, leading to higher sales volume and prices, ultimately contributing to the funds sent to the Kremlin’s war chest.
Global Witness, a campaign group, estimated that around 5.2 million barrels of refined petroleum products produced from Russian crude oil were imported to the UK in 2023. The majority of the imported fuel, approximately 4.6 million barrels, was jet fuel, with researchers suggesting its use in one in 20 UK flights. Lela Stanley, campaign lead for the Ukraine team at Global Witness, criticized the UK government for allowing the refining loophole to remain open, stating that every pound spent on Russian oil contributes to funding Putin’s war in Ukraine.
Exclusive figures shared with the BBC from CREA indicated that over the first 12 months of the Russian oil ban, the UK imported approximately £569 million worth of oil products derived from Russian crude. Both reports claimed that the loophole indirectly provided the Kremlin with over £100 million in tax revenues from the UK imports.
