Russian oil continues to make its way to Britain.

Despite stringent anti-Russian sanctions imposed by Western countries, including the United Kingdom, aimed at curtailing Moscow's fossil fuel revenues, millions of barrels of fuel derived from Russian crude oil continue to infiltrate British markets. This situation highlights a significant loophole in the global oil trade that undermines the intended impact of these sanctions.

The BBC, referencing two separate studies, reports that the United Kingdom, among numerous Western nations, has officially banned the import of oil and oil products originating from Russia. This move was part of a broader strategy to diminish the financial resources Moscow could garner from its oil exports. However, the findings from these two reports reveal a critical gap in the sanctions regime, allowing products processed from Russian crude to be legally imported into the UK.

This "oil processing loophole" involves countries like India and China, which have not imposed sanctions against the Kremlin, legally importing Russian crude oil. They then refine it into various petroleum products, including aviation fuel and diesel, according to the Centre for Research on Energy and Clean Air (CREA). These countries can subsequently export these products to Britain or other EU countries, effectively bypassing direct sanctions on Russian oil.

Isaak Levy, head of European-Russian policy and energy analysis at CREA, emphasizes the dilemma posed by this loophole. It inadvertently fuels demand for Russian oil, enhancing sales volumes and prices, thereby boosting the funds flowing into the Kremlin's military coffers. The research conducted by Global Witness estimates that approximately 5.2 million barrels of petroleum products, processed from Russian crude, were imported into the UK in 2023. Notably, 4.6 million barrels of this were aviation fuel, which researchers suggest was utilized in one out of every twenty flights in Britain.

Exclusive data provided to the BBC by CREA for the first 12 months following the December 2022 implementation of the Russian oil supply ban reveals that Britain imported petroleum products derived from Russian crude valued at £569 million. Both reports suggest that this indirect route provided the Kremlin with over £100 million in tax revenues.

The primary sources of these imports were identified as three major refineries in India – Jamnagar, Vadinar, and New Mangalore – and nine others across various countries, including China. CREA and Global Witness based their evaluations on oil supply data from the analytics firm Kpler and price data from Eurostat and other sources, acknowledging the assumptions, challenges, and limitations inherent in such trade analyses.

The International Energy Agency's data indicates a surge in Indian imports of Russian oil following the onset of the conflict in Ukraine. In response to these revelations, London has urged European states to halt the import of Russian liquefied natural gas due to concerns it might enter the British energy system.

The United Kingdom declared its intention to cease the use of Russian oil in March 2022, shortly after Russia's full-scale invasion began, signaling a commitment to reduce dependency on Russian energy resources. However, the persistence of Russian petroleum products in the British market through indirect channels underscores the complexity of global energy trade and the challenges in enforcing comprehensive sanctions. This situation calls for heightened vigilance and perhaps a reassessment of the current sanction mechanisms to more effectively isolate Russian energy exports and diminish the Kremlin's revenue from fossil fuels.