UK ‘not protected from economic consequences’ of Russia sanctions, say MPs

An influential Westminster committee has claimed the British economy is “not protected from the economic consequences” of western sanctions against Russian oil and gas, and that Rishi Sunak must bring forward help to the country’s lowest earners.

A report from the Treasury Select Committee said the UK government was “right to insist” on wide-ranging sanctions against Russia and that their “impact on Russia’s economy could be catastrophic and long lasting”.

Boris Johnson’s government has sanctioned more than 1,000 entities and individuals in response to Russia’s invasion of Ukraine.

This has included freezing the assets of all major Russian banks and barring them from operating in the UK.

The UK, EU and US have all placed sanctions on Russian gas and oil exports to varying degrees, with British household energy bills now expected to soar a further £1,000 as a result.

 Mel Stride, Tory MP and chair of the Treasury Select Committee, said “this war will also have economic consequences here at home”.

“It’s becoming increasingly clear that the Government will need to support those who are hit hardest by price rises,” he said.

“Recent reports show that the public finances are in a stronger position than anticipated, and the chancellor should use this additional fiscal firepower to bring forward support for those on the lowest incomes.”

Sunak said on Sunday that he wanted to be “honest” with people about the effect that Russian sanctions will have on the British economy.

He committed to providing extra help to households facing soaring prices in his spring economic statement today, however he said that he “can’t solve every problem”.

“The steps we’ve taken to sanction Russia are not going to be cost free at home and I want to be honest with people that it’s not going to be easy,” he said.

Responding to the report, a Treasury spokesperson said: “We are committed to ensuring people comply with financial sanctions, and work is underway at pace across government to ensure banks, financial institutions, businesses and individuals understand them.”