THE COST OF CUTTING TIES WITH RUSSIA

The UK is importing fewer fossil fuels, but paying more for the privilege

Supplies of oil, gas, and coal flowing into Britain from Russia have plummeted since Putin’s invasion of Ukraine - but rising prices have meant more cash has been handed over in return for fossil fuels. The UK Government has committed to ending imports of oil and coal from Russia by the end of the year and cutting off imports of Russian gas “as soon as possible thereafter.”

Soon after the war started, Prime Minister Boris Johnson called on Western nations to “take back control” of their energy supplies and end an “addiction” to Russian oil and gas that has left them subject to “blackmail” by Vladimir Putin.

The latest House of Commons Library report shows that overall, the UK relied on Russia for 9% of its overall energy imports. In 2021, that meant imports of gas, oil and coal from Russia were worth a combined £4.5 billion.

However, the UK is far less reliant on Russian imports than the European Union, which relies on Russia for 39% of the gas, 23% of oil imports and 46% of coal imports.

The HOC report shows gas provided 41% of the UK’S energy needs in 2021, with 57% of that supply coming from imports, and 4% from Russia.

Supplies of gas from Russia had increased last year by 37%, making it the fourth most important source.

Oil, meanwhile, amounts to 34% of the UK’S energy needs. Some 26% of all oil used in the UK is imported from abroad, with 9% of that coming from Russia.

Imports of Russian crude oil fell in 2020 and in 2021 but it was still the third most important source behind Norway and the USA.

Russia was also by far the most important source of diesel, at 34% of all imports and 20% of the total UK supply of diesel in 2021.

Coal provided just 3% of UK energy needs in 2021, but 55% of that was imported and Russia provided 27% of all coal imports that year - the single largest supplier to the UK.

However, since the invasion and the UK’S commitment to end its reliance on Russian energy, supplies have dropped considerably.

In March, the first month following the invasion, imports of gas from the country dropped by 67%, oil fell by 48% and supplies of coal were cut by 39%, compared to March 2021.

But rising energy costs meant the UK paid far more for less - in March the UK spent 30% more on Russian gas than it had in the same month the previous year, 17% more on oil and 42% more on coal.

That means the UK spent £404m on energy from Russia in March of this year, compared to £337m in March 2021 - an overall increase of 20% in costs in return for half as much in fossil fuels.

The HOC report says: “While the UK relies on Russian energy to a lesser extent than many other European countries, it is still exposed to the disruption in energy markets due to the invasion of Ukraine.

“Gas and oil prices have increased sharply and are likely to remain high as many European countries look to other sources of energy.”