Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her Department holds information on the proportion of Russian oil (a) imports and (b) exports insured by UK financial instruments.

The Oil Price Cap was designed to meet two core objectives: to bear down on Russian revenues that could otherwise be used to fund its illegal war, whilst also maintaining global energy security and flows of affordable oil to countries that need it.

The measure has been effective partly thanks to the prevalence of highly sought after G7+ service providers, which means it is very difficult to make major oil trades or gain significant market share without using G7+ services at all.

Where G7+ services are involved in the shipping of Russian oil and oil products to third countries, these trades must be conducted at or below the relevant price cap – constraining Putin’s ability to use inflated oil revenues to sustain his war machine. This is why the UK, alongside G7+ partners, has provided extensive guidance to industry to advise service providers, including insurers, on how they can move Russian oil in compliance with the price cap.

While the cap allows UK service providers to continue to be involved in the shipping of Russian oil and oil products to third countries, it is important to note that since 5 December 2022 the UK has banned the import, acquisition, supply and delivery of Russian oil and oil products into the UK.