The UK Government sparked fury last night after easing sanctions on Russian oil - just hours after voting down attempts to secure more domestic production in the North Sea.
Under the revised rules announced last night, the UK will allow imports of products such as jet fuel and diesel refined from Russian crude in countries including India and Turkey. Restrictions on the transport of Russian liquefied natural gas (LNG) have also been temporarily relaxed.
The announcement came just hours after the House of Commons voted to reject a Conservative amendment to the King’s Speech which called on ministers to approve new drilling in the North Sea.
Conservative leader Kemi Badenoch said Labour had voted against new UK oil and gas licences while the country was now “importing from Russia instead of drilling in the North Sea”.
The decision also drew criticism from Labour’s own ranks. Dame Emily Thornberry, chair of the foreign affairs select committee, said Ukrainian officials were “very disappointed” by the move.
The Russian waiver, which came into force today, comes amid growing fears over disruption to global energy markets following the effective blockade of the Strait of Hormuz — a critical shipping route for oil and gas exports.
Fuel prices have surged since the conflict began. European jet fuel prices more than doubled initially and remain significantly elevated, while UK petrol prices have continued climbing.
Despite supply concerns, the Commons voted 323 to 108 to reject a Conservative amendment to the King’s Speech which called on ministers to approve drilling at the Rosebank and Jackdaw fields.
Shadow energy secretary Claire Coutinho claimed Labour MPs had been instructed to “vote to shut down the North Sea” and warned the move would leave the UK “more reliant on higher-emission gas from Qatar or the US”, or funnelling “billions of pounds to Norway to import gas from the very same basin” in the North Sea.
She added: “This is the single greatest act of industrial self-harm we have seen in a generation.”
Energy Secretary Ed Miliband told MPs: “We’re not in favour of a ‘turning off the taps’ position but, I’ll just be honest with the House, nor are we in favour of a drilling every last drop.”
Russell Borthwick, chief executive of Aberdeen & Grampian Chamber of Commerce, said the decisions exposed “a glaring contradiction” at the heart of UK energy policy.
He said: “Businesses and workers across the North-east will struggle to understand how the UK Government can justify loosening restrictions on Russian energy imports while simultaneously blocking responsible domestic production from the North Sea.
“North Sea oil and gas supports hundreds of thousands of jobs, billions in economic value and some of the highest environmental and regulatory standards anywhere in the world.
“If the UK still needs oil and gas, and ministers themselves acknowledge that it does, then it makes far more sense economically, strategically and environmentally to produce it here, supporting British jobs and British supply chains, rather than increasing reliance on imports linked to hostile regimes.
“What industry is asking for is not ideology or political point-scoring, but a credible, pragmatic energy policy that protects energy security, investor confidence and the livelihoods of communities like Aberdeen which have powered the UK economy for decades.”
A UK Government spokesperson said on Tuesday it had "introduced a range of new prohibitions under the Russia sanctions regime".
"This includes further export and import bans against Russia, including restrictions on the sale of refined oil products derived from Russian crude oil and the import, supply and delivery to third countries of Russian uranium," they added.
"These sanctions also include a maritime services ban on Russian LNG. This will gradually restrict Russia's access to the UK's world-leading shipping and insurance services, disrupting their ability to transport Russian LNG.
"We are committed to strengthening our sanctions on Russia to degrade its ability to wage war in Ukraine, whilst protecting critical supply chains and maintaining market stability."