The UK and Italy are temporally renewing their purchases of Russian oil seeking cheaper oil imports as inflation gets sticky in Europe due to the consequences of the war in Iran. Inflation in the UK went down in April at 3% from 3.4% in March but is still relatively high.
The UK’s Department for Business and Trade has issued a new waiver on Russian oil purchases out at sea for diesel and jet fuel. The sanctions waiver is similar to the US sanctions waiver for Russian oil at sea. Junior Treasury Minister Danny Tomlinson told Reuters that the decision was being made in the “national interest” due to rising prices.
In Parliament, UK Opposition Leader Kemi Badenoch said that it is only the Conservatives who are standing up to Russia as the Prime Minister has decided to give money to Russia. Prime Minister Keir Starmer reiterated that the British government will keep pressuring Russia with sanctions but the British public has had enough of facing high wage bills due to international events.
Meanwhile, Italy is also renewing Russian oil purchases, however the Italian government has not issued a statement on the issue yet. We have also reached out to Italian authorities but had no response.
An oil-tanker called the Chrystal Antarctic (IMO: 9332640) is travelling to the Port of Augusta, Sicily (Italy) after visiting the Russian port of Ust-Luga. The vessel has a flag from the Solomon Islands. Augusta is equipped with an oil terminal and is located near an oil-refinery which was previously owned by Lukoil and sold to a private equity firm called G.O.I. Energy.
The sighting of an oil tanker trading Russian oil in Italy is unusual after Italy made extensive efforts to curb the purchases.
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