PARLIAMENTARY DEBATE
Processed Russian Oil Products: Sanctions - 20 May 2026 (Commons/Commons Chamber)
Debate Detail
I want to make it absolutely clear that our sanctions regime today is tougher than it was yesterday or last week. In fact, thanks to the Russia (Sanctions) (EU Exit) (Amendment) Regulations 2026 statutory instrument, we will from today for the first time—for the first time—ban the import not only of uranium but of Russian oil products processed in a third country. We are not lifting any existing sanctions at all. We are, like other countries, phasing in these sanctions, which is why, in the light of the situation in the middle east, we have issued a targeted temporary licence to allow the continued import of diesel and jet fuel. These licences are temporary and targeted. We will review them regularly and repeatedly, and will suspend them as soon as we possibly can.
As a result of all the measures that we have taken, there will be less Russian oil on the market, not more, Russia will be poorer, not richer, and Putin will be weaker, not stronger.
What message does this send to the international community, to the people of Ukraine, and to workers in our North sea oil and gas industry, which is being crushed by the misguided eco-zealotry of the Secretary of State for Energy Security and Net Zero? We are not only rewarding the thuggish and criminal behaviour of the Russian state, but punishing ourselves and the skilled workforce in the United Kingdom.
Who loses out while we signal to Russia that we are willing once again to buy its oil? It is the British people. We are seeing 1,000 job losses in oil and gas in the UK every single month, and losing out on £25 billion in tax revenue over the next 10 years, which we could be investing in our public services. Just yesterday I pointed out that Moscow would be celebrating the useful idiots opposite and today the Government have proved my point.
According to the Government website, where the announcement was made yesterday, the Secretary of State has
“the power to vary, revoke or suspend this licence at any time”,
so will he reconsider the decision? Why does the Minister believe that increased reliance on foreign imports improves British energy security? What alternatives did the Government consider? And who on earth is in charge of our energy security? Is it the Energy Secretary, the Prime Minister, or Vladimir Putin?
The truth is that both sides of the House agree and, in fact, I think all parties in the House agree—well, we have not heard from Reform yet—that we need to make sure that Putin does not prosper. One of the key ways of doing that is making sure that we tackle the shadow fleet, which we have been doing very successfully. More than 500 tankers have been disrupted, and $1.6 billion less oil will be transported this year than last year because of those sanctions.
To be precise on the hon. Member’s question of whether we will review the licences, I have already said we will review the licences. They are there for a very simple reason, which is that, just as the previous Government nearly always introduced sanctions in a phased way when he was a Minister, that is precisely what we are doing with these sanctions on oil products processed in a third country. We are doing the right thing, and I would have thought that he would want to praise us. Unfortunately, I think he has tried to find a political headline rather than look into the facts.
At the same time, partly in recognition of the instability there may be in the energy markets as a result of the events in the middle east and the war in Iran—obviously, we have chosen not to take part in it—we have decided to implement these sanctions in a phased way, as many other countries have done, including Australia and Canada. That is why we have introduced these licences for diesel and jet fuel. As I have said, I want these licences to last as short a time as is possible and necessary to manage that market instability, and that is why we will review them as much as possible.
I pay tribute to my hon. Friend as our trade envoy to Ukraine. We stand 100% beside our friends in Ukraine. Indeed, the package of sanctions we have introduced this time around is the toughest of any, and I know our Ukrainian friends have supported them.
Last month, the Liberal Democrats urged the Government to implement a bold plan to keep Britain moving, which included a 10p cut to fuel duty, but also featured proposals to boost public transport by slashing bus fares to £1 and cutting rail fares by 10%. This would have taken pressure off our forecourts, but the Government sat on their hands. Instead, the Government believe that our best course of action is to abandon all morality and to indirectly fund Putin’s illegal war. I would like to ask the Minister how much money will be spent on Russian oil products as a result of this decision, and will he admit that lifting these sanctions will indirectly fund Russia’s invasion of Ukraine?
The whole of this House stands 100% beside Ukraine. I myself am probably the longest standing critic of Putin in this House. Back in 2014, when others were in government and not doing anything about the invasion of Crimea, I was saying that we should be tackling Russian aggression, because otherwise, if Putin was allowed to take Crimea with impunity, he would come for the rest. I do recognise that Liberal Democrat Members have been calling in the Business and Trade Committee and elsewhere for us to tackle precisely this issue of Russian crude oil processed in other countries that ends up coming into the UK. Up until now, that has been a source of income for Putin, but we are the Government who are stopping this, not enabling it.
I am not ashamed of what we are doing today. As a very stout defender of Ukraine’s right to defend itself, and as somebody who argued for a very long time that we should be trying to make sure that Russian frozen assets were made available to Ukraine, I am proud of what we are doing, because we are introducing a tougher sanctions regime. The only bit we have had to take cognisance of is the fact that the situation in the middle east means that there was a danger of a sudden spike in prices and we had to address that. I very much hope that this will be a very temporary measure. I will be keeping a very watchful eye to make sure that we are able to suspend the licences as soon as we possibly can.
“I am one of your constituents and have never had reason to contact you. However, on awaking this morning I am both angry and ashamed by the announcement, snuck out last night, that your government is (partially) lifting sanctions on the purchase of Russian oil.”
Can the Minister reassure me and my constituents that this will be a temporary measure, similar to the sanctions restrictions put in place by the Americans? My understanding is that they will be there for 30 days.
“one of the biggest issues facing civilians in Ukraine is the constant uncertainty—not only physical safety, but the emotional pressure of living with disrupted homes, schools, work, healthcare and family life.”
They are standing firm and I am sure that he can reassure me that we are standing firm by their side.
On the question about Europe, it is true that the European Union introduced its legislation faster than we did. It did it earlier, before the Iranian conflict came into play. That is one of the reasons why there has been some difference between us. Normally, we try to align ourselves all the way with the European Union and others, but I note that the United States has only today extended its waiver for another month, and I think I am right in saying that Australia and Canada have done something very similar to us. It has been standard practice when we have introduced these kind of sectoral sanctions to do so in a phased way because, apart from anything else, that makes it possible for UK businesses to accommodate themselves.
I want to make sure that the hon. Member understands that, up until today, it has been perfectly legal for people to bring products that originated from Russian crude oil and that have been refined in a third country into the UK. It is only now that we are changing that.
The serious point to make is that I am proud of what we are doing today. I am not hiding away from what we are doing, but we could definitely have communicated it better, and that is entirely my fault.
The hon. Gentleman will know that we are already taking very seriously the issues that affect many, many families, including in my constituency. The number of people who rely on oil to heat their homes is not very large, but we have already taken action, and around 3 million households across the whole UK are benefiting. I know that the Chancellor of the Exchequer is looking at these issues very closely.
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