Carmichael condemns softening of Russian oil and gas sanctions
Orkney and Shetland MP, Alistair Carmichael, has today condemned news that the government is softening planned sanctions on Russian oil and gas. Plans to impose a ban on UK imports of diesel and jet fuel made from Russian oil in third countries have been watered down amid concerns over supplies and price rises due to the effective blockade of the key Strait of Hormuz waterway since the start of the US-Israel war with Iran.
The original plan to ban oil products derived from Russian crude oil, such as jet fuel and diesel, entering the UK from third countries, was first announced in October last year, but will now be “phased in” over months. Millions of barrels of fuel made from Russian oil are currently still being imported to the UK through a loophole in trade rules.
Speaking in the House on Wednesday, Mr Carmichael said:
“For years, Ministers on the Treasury Bench have told us that oil is traded as a global commodity, so it makes no difference where in the world it is taken out of the ground and that, as a consequence, we can wind down production on the UK continental shelf—availability of supply would continue. Given what the Minister has had to announce today, is he satisfied that that argument still holds water?”
Responding for the government, Minister of State for Trade Chris Bryant MP said:
“Well, it has not been an argument that I myself have advanced, although obviously I stand by my Labour colleagues if that is the argument that they have been making—I am part of a team, after all.
“The point I would make in relation to drilling in the North sea is that I think it is a wrong argument to say that if we were to issue new licences today that would affect the energy prices we are facing because of the situation in the middle east. What we absolutely have to do is make sure that we deal with market instability today.
“It was not our choice to have this war in Iran. We have not taken part in it. We think it was a mistake to enter into it without a plan. I am very aware, from conversations I have had with many of my counterparts in the Gulf—perhaps there will be more on that later on today—that these issues are at the forefront of their minds.”
Reacting after the exchange, Mr Carmichael said:
“For the many people who successfully protested to get Russian tankers barred from Sullom Voe and Flotta in 2022 – to say nothing of the Ukrainian people themselves – it will be hard to accept the government’s rationale today for softening sanctions on Russian oil and gas, whatever the justification.
“If it really is the UK government’s position that loopholes can be allowed for Russian oil and gas to enter the UK market, it seems difficult to square that with the flat refusal to countenance future operations in the North Sea. If the government has no plan to reduce our domestic demand, then putting us in hock to the likes of Vladimir Putin can only be a backward step. Ministers need to set out exactly what their position is here.”