Britain has been cautioned by Keir Starmer for inadvertently funding Vladimir Putin’s war efforts due to existing sanctions loopholes that allow millions of pounds to flow into Putin’s coffers. The Liberal Democrats are urging the government to tighten restrictions and eliminate these “unconscionable” gaps that are bolstering the Kremlin’s finances. Specifically, they are calling for a ban on UK companies from transporting or insuring Russian liquefied natural gas (LNG) and prohibiting the sale of products derived from Russian oil abroad, actions that could significantly dent Putin’s economy by over £500 million.
Helen Maguire, the spokesperson for the Liberal Democrats on defense matters, criticized the UK’s ongoing financial contributions to the Kremlin amid Putin’s prolonged invasion of Ukraine. Despite the government’s recent announcement of reducing the price cap on Russian oil to $47.60 per barrel, Maguire insists that more substantial actions are imperative, advocating for a further reduction to $30 to effectively curb funding to Putin’s military operations.
Maguire emphasized the necessity of closing regulatory loopholes that allow the UK to inadvertently support Putin’s aggressive pursuits through oil and gas transactions. The Liberal Democrats are pushing for a comprehensive approach that includes ending the import of Russian oil processed outside the country, banning British companies from facilitating Russian gas shipments or providing insurance for such activities, and enforcing a stricter oil price cap, collectively aiming to deprive the Kremlin of substantial financial resources.
Highlighting the need to stand in solidarity with Ukraine, Maguire stressed the importance of demonstrating unwavering support for President Zelensky and the Ukrainian people. An analysis conducted by the Centre for Research on Energy and Clean Air (CREA) revealed that the importation of products processed from Russian oil contributes significantly to the Kremlin’s tax revenues, amounting to over £500 million. Additionally, it is estimated that UK-owned or insured LNG carriers have assisted in transporting approximately £45 billion worth of Russian goods since Putin’s invasion of Ukraine in 2022.
Responding to these concerns, a Foreign, Commonwealth & Development Office (FCDO) spokesperson reiterated the government’s commitment to intensifying economic pressure on Russia by targeting sanctions to diminish oil and gas revenues. The spokesperson clarified that the importation of Russian LNG has been prohibited since 2023, and recent measures have further reduced the crude oil cap. Collectively, sanctions imposed by the UK and its allies have reportedly cost the Russian economy a significant amount, estimated at $450 billion.
