UK Government Publishes Guidance On The UK Ban On Oil And Oil Products

• Published date: 29 November 2022
• Subject Matter: International Law, Energy and Natural Resources, Energy Law, Oil, Gas & Electricity, Export Controls & Trade & Investment Sanctions
• Law Firm: Steptoe & Johnson
• Author: Alexandra Melia

On November 21, 2022, the UK Department for Business, Energy and Industrial Strategy published guidance on the UK ban on Russian oil and oil products intended for entry into the UK (the "BEIS Guidance") that was legislated for by the Russia (Sanctions) (EU Exit) (Amendment) (No. 14) Regulations 2022 and will come into effect on December 5, 2022. Among other things, the BEIS Guidance explains how to determine the origin of oil or oil product imports to the UK and sets out UK sanctions authorities' expectations with respect to compliance controls in relation to the ban.

UK Ban on Russian Oil and Oil Products Intended for Entry into the UK and Related Services

When it comes into effect on December 5, the ban will prohibit:

• the import into the UK of oil and oil products that originate in, or are consigned from Russia;

• the direct or indirect acquisition of oil and oil products that originate, or are located in, Russia with the intention of bringing the goods to the UK;

• the direct or indirect supply or delivery of oil and oil products from a place in Russia to the UK; and

• the direct or indirect provision of technical assistance financial services, funds, or brokering services relating to the import, acquisition, supply and delivery of Russian-origin oil and oil products into the UK.

According to the BEIS Guidance, the ban will apply "to the entirety of the prohibited activity, including acts that occur outside of the UK."

The ban will apply to a wide range of oil and oil products that are produced, manufactured, extracted or processed in Russia. In particular, the ban will apply to goods falling within the Harmonized System ("HS") codes 2709, 2710, 2711, 2712, 2713, 2714, 2715, 2207, and 283826 and include crude oil, refined products, and bioethanol, bitumen and petroleum gases.

How to Determine the Origin of Oil Imports to the UK

For the purposes of the ban on the import, acquisition, supply and delivery of oil, the "origin" of the goods is determined in accordance with the Taxation (Cross-border Trade) Act 2018 and the UK's existing non-preferential rules of origin.

If oil or oil products neither originate in Russia nor are located in Russia, they are not subject to the import, acquisition, supply and delivery bans. The BEIS Guidance specifically states that "[o]il and oil products that originate from another country, and that are located in or consigned from a country other than Russia are therefore not subject to the prohibitions."

In applying...