MoD threatens to cut off fuel suppliers over use of Russian oil

Defence chiefs have threatened to cut off fuel suppliers over their use of Russian oil, after The Telegraph raised questions about British military supply chains. 

The Ministry of Defence (MoD) said it would take “immediate action” to switch suppliers if they were found to be using Russian products in supplies provided. 

It buys fuel from a range of suppliers, including jet fuel from Motor Oil Hellas, a refinery based in Greece with whom it signed a new £10m contract in May this year for fuel to Cyprus. 

Motor Oil signed a five-year supply deal with Rosneft in November 2017, according to reports at the time, while tanker tracking data indicates shipments of fuel oil have been sent from Russia to its terminal in Corinth since Russia’s invasion of Ukraine. 

The Greece-listed company told analysts in April that its purchases of Urals crude oil, Russia’s flagship grade, amounted to about 5.5pc of its total purchases in 2021. 

A Ministry of Defence spokesman said it had “been assured the products we procure from Motor Oil Hellas are not sourced from Russian suppliers”. 

It added: “If oil products supplied to the MoD are found to come from Russian suppliers, we will take immediate action to switch to alternate suppliers.”

Russia’s war on Ukraine has prompted many buyers to try and steer clear of Russian supplies, to avoid funding the Kremlin’s war and due to concerns about getting caught up in any sanctions. 

The Cabinet Office in March issued new guidance to public bodies telling them to identify and consider cancelling contracts with Russian and Belarusian businesses. 

Steve Barclay, Boris Johnson’s chief of staff, said public money should “not be funding Putin’s war machine”. 

Neither the UK nor the EU are set to ban imports of Russian oil until the end of the year, however. The EU agreed at the end of May to halt 90pc of Russia’s crude oil imports to the bloc by year end. 

The UK said in March it will phase out imports by the end of the year but needs to give industry enough time to adjust supply chains.

Motor Oil Hellas did not respond to requests for comment.