MOSCOW (MRC) -- The UK imported no crude oil or refined products from Russia in June for the first time on record, according to UK trade data, following phased sanctions on imports of Russian oil over the invasion of Ukraine, said S&P.
As a result of the UK's phase-out of Russian oil and gas imports, there were no flows of refined oil, crude, gas or coal, coke and briquettes from Russia in June, the Office for National Statistics said. The UK government said early March the country would phase out Russian oil imports by the end of 2022 and end imports of Russian liquefied natural gas "as soon as possible" thereafter.
Prior to Russia's Feb. 24 invasion of Ukraine, it was the UK's largest supplier of refined oil in 2021, accounting for 24.1% of all imports, also supplying 5.9% of the UK's crude oil imports, and 4.9% of the UK's gas imports. For the 12 months to February 2022, the value of Russian fuel imports had averaged GBP499 million (USD589 million), according to ONS data.
The value of crude imports averaged GBP105 million over the same pre-war period, with gas imports averaging GBP95 million and coal and coke GBP18 million, it said.
While imports of Russian oil are allowed during the sanctions phase-in period, businesses have been encouraged to secure oil from alternative sources. As a result, the UK's imports of refined products from Belgium, Kuwait, the Netherlands and Saudi Arabia rose in recent months, according to ONS data.
The US, Norway, Guyana, and Angola were the biggest suppliers of additional crude to the UK in June compared to pre-war levels, the data showed, with a combined additional value of GBP1.04 billion.
For oil products, Saudi Arabia was the biggest additional supplier in June to the UK compared to pre-war levels, with Belgium, the UAE, South Korea, and the Netherlands leading other countries supplying additional imports.
As per MRC, Many global oil traders and banks have stopped dealing with Indian refiner Nayara Energy, a Rosneft affiliate, as they are worried about Western sanctions over Russia's invasion of Ukraine. Nayara per se has not been sanctioned as part of the international response to what Russia calls its "special military action" against Ukraine but sanctions are in place against Rosneft. The Russian energy giant owns about 49% of Nayara which is India's second-largest private refiner, while Kesani Enterprises Co Ltd, a consortium led by Trafigura Group and Russia's UCP Investment Group, holds 49.13%.