Sanctions against Russia
29 Commons Library Research Briefing, 22 March 2023
and oil products into the UK is prohibited, was brought forward from 31
December 2022 to the 5 December 2022.
The UK's initial decision mirrors that of the United States, which announced a
ban on the import of Russian oil, liquefied natural gas and coal on 8 March
2022. On the same day, the EU announced a plan to reduce its dependence on
Russian energy by 2030 (see below).
On 6 April 2022 the Government also announced that the export of key oil
refining equipment and catalysts would be banned, thereby "degrading
Russia's ability to produce and export oil – targeting not only the industry's
finances but its capabilities as a whole".
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That export ban is enacted by the
Russia (Sanctions) (EU exit) (Amendment) (No.8) Regulations 2022.
Oil price cap
Following a meeting of Finance Ministers in early September 2022, the
countries of the G7 announced their intention to "finalise and implement a
comprehensive prohibition of services which enable maritime transportation
of Russian-origin crude oil and petroleum products globally" unless such
products are purchased at, or below, a designated price cap. The aim of
introducing a price cap, which will be determined by participating states, is
to "reduce Russian revenues and Russia´s ability to fund its war of aggression
whilst limiting the impact of Russia´s war on global energy prices, particularly
for low and middle-income countries".
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The G7 is seeking establish a "broad coalition" to maximise the effectiveness
of this measure and urges all countries that intend to continue importing
Russian oil and petroleum products "to commit to doing so only at prices at
or below the price cap".
In the UK, the Russia (Sanctions) (EU Exit) (Amendment) (No.16) Regulations
2022 enact the measures necessary to prohibit access to UK vessels and
services, such as insurance, used for the transportation of Russian oil and oil
products globally, unless such products are purchased at, or below, an
agreed price cap.
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The regulations also confer on the Office of Financial
Sanctions Implementation (OFSI), the power to impose civil monetary
penalties on any person who fails to comply with these new measures.
This measure, in coordination with the EU and US, came into force on 5
December 2022 for Russian-origin oil and the 5 February 2023 for Russian-
origin oil products such as petroleum.
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Foreign, Commonwealth and Development Office, Press release, 6 April 2022
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G7 statement of Finance Ministers, 2 September 2022
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$60 per barrel for crude oil, $100 for high-value products such as diesel and gasoline and $45 for
lower value products such as fuel oil (HM Treasury, Press release,
3 February 2023)
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US Department of the Treasury, Preliminary guidance on the implementation of a maritime services
policy and related price exception for seaborne Russian oil (PDF), 9 September 2022
