Britain has been cautioned by Keir Starmer for inadvertently aiding Vladimir Putin’s financial resources due to existing sanctions loopholes. The Liberal Democrats have urged the government to tighten restrictions to prevent UK companies from transporting or insuring Russian liquefied natural gas (LNG) and to prohibit the use of Russian oil-derived products in other nations. This move is estimated to reduce Putin’s economy by over £500 million.
Helen Maguire, the party’s defense spokesperson, criticized the UK’s ongoing contribution to the Kremlin’s finances amid Putin’s prolonged aggression in Ukraine. Despite the recent reduction of the price cap on Russian oil to $47.60 per barrel, Maguire insisted that further action was necessary, calling for a decrease to $30 to truly impact Putin’s war efforts.
Maguire emphasized the need to close loopholes in legislation that inadvertently support Putin’s military pursuits. The proposed measures include halting the import of Russian oil processed abroad, restricting British companies from facilitating Russian gas shipments, and revising the oil price cap to significantly affect the Kremlin’s revenue.
Furthermore, the Centre for Research on Energy and Clean Air (CREA) analysis revealed that the Kremlin gains substantial tax revenue through the importation of products derived from Russian oil. Additionally, it was estimated that UK-owned or insured LNG carriers have facilitated the transportation of around £45 billion worth of Russian goods following Putin’s invasion of Ukraine in 2022.
In response, an FCDO spokesperson highlighted the continued efforts to apply economic pressure on Russia by targeting sanctions to diminish oil and gas revenues. The spokesperson noted that importing Russian LNG has been prohibited since 2023, and recent adjustments to the crude cap aim to further curb financial support to Russia. Overall, sanctions imposed by the UK and its partners have reportedly cost the Russian economy $450 billion.
