The owner of one of Britain’s biggest oil refineries has clarified its relationship with a Russian lender which was sanctioned following the country's invasion of Ukraine.
Essar Oil UK, which acquired the Stanlow refinery at Ellesmere Port from Shell in 2011, issued a statement ahead of the UK government confirming it will ban Russian oil by the end of 2022.
The site provides 4.4 billion litres of diesel, 3 billion litres of petrol and 2 billion litres of jet fuel a year.
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When contacted by BusinessLive Essar Oil UK, which is ultimately owned by Ravi and Shashi Ruia, insisted it does not have a banking or borrowing relationship with VTB or any UK entity covered by UK sanctions.
VTB was sanctioned and is set to be removed from the SWIFT global payments messaging system.
However Essar Oil UK confirmed a shareholder has "arrangements" with the bank and that it has been "provided assurances that it is taking all necessary actions to ensure full compliance with the prevailing sanctions regime impacting VTB".
In a statement, the company said: "Essar Oil UK does not have a banking or borrowing relationship with VTB or any UK entity covered by UK sanctions.
"Essar Oil UK is aware that its shareholder has arrangements with VTB.
"The shareholder has provided assurances that it is taking all necessary actions to ensure full compliance with the prevailing sanctions regime impacting VTB.
"EOUK’s operations are not expected to be impacted by the current announced sanctions.
"We are actively monitoring the developing body of new sanction rules as they evolve and taking appropriate advice to maintain our compliance with applicable sanctions laws."
The statement from Essar Oil UK came ahead of the UK government confirming reports that it is set to ban Russian oil by the end of 2022.
Business Secretary Kwasi Kwarteng said on Twitter: "This transition will give the market, businesses and supply chains more than enough time to replace Russian imports – which make up 8% of UK demand.
"Businesses should use this year to ensure a smooth transition so that consumers will not be affected.
"The government will also work with companies through a new taskforce on oil to support them to make use of this period in finding alternative supplies.
"The UK is a significant producer of oil and oil products, plus we hold significant reserves. Beyond Russia, the vast majority of our imports come from reliable partners such as the US, Netherlands and the Gulf. We’ll work with them this year to secure further supplies.
"The market has already begun to ostracise Russian oil, with nearly 70% of it currently unable to find a buyer. Finally, while the UK is not dependent on Russian natural gas - 4% of our supply - I am exploring options to end this altogether."
