Innovative Energy Consultancy Ltd
Innovative Energy Consultancy Ltd

UK to Transition Away from Russian Oil and Gas by 2023

In a punishing move, the UK has joined the United States in banning Russian oil after the country invaded Ukraine.  As reported in The Guardian, Prime Minister Boris Johnson stated that stopping imports by the end of 2022 would be “another economic blow to the Putin regime.”

These latest sanctions are considered highly damaging to the Russian economy with energy experts calculating that a UK oil ban alone will cost Moscow more than £5 billion this year.  The UK imports 13% of diesel from Russia, none of its petrol, and is looking to phase out the 4% it buys in gas imports.  The US buys only 7% of its oil from Russia and does not buy any gas while the EU sources 27% of its oil and nearly 40% of its gas from the country.

Prime Minister Johnson stated that consumers would be protected and assured that the government’s transition to other oil suppliers would go smoothly.  This guarantee was directed to the British public to avoid further queuing at petrol stations when deliveries last year were delayed and petrol purchasing had to be limited at the pumps.

As a result of this announcement, petrol prices, as well as inflation, are sure to rise in the West.  Analysts warn the move may push Britain into recession. Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, agrees: “With supply constrained, while demand rockets for supplies from elsewhere in the world, it seems the only way is up for energy prices.”

She continued, “There is no magic wand to wave to speed up the shift to renewables, and although the EU has pledged to accelerate the process of weaning member countries off Russia, it’s going to be a hugely difficult and expensive transition.”

Thank you! Your subscription has been confirmed. You'll hear from us soon.
Sign up to receive Energy Brief, which includes our monthly report on Industry News and Market Price Trends.