Sunak fury as EU’s next Russia sanctions threaten UK recession with £75bn black hole

Russia: Rishi Sunak outlines the latest financial sanctions

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Britain has already pledged to phase out Russian oil by the end of the year. But as EU finance ministers meet to discuss a fifth round of sanctions, Prime Minister Boris Johnson has urged the bloc to consider sanctioning gas too. Mr Sunak is said to be staunchly opposed to this view from his boss. While the EU is dependent on Russia for 40 percent of its gas imports, Britain is far less reliant, with Russia’s imports accounting for around only five percent of total supplies.

Now, 100 MEPs have signed a letter calling for Brussels to impose a ban immediate ban on Russian gas.

But Mr Sunak has warned that if Europe cuts off Russia’s oil and gas, it would plunge several countries across the region into recession.

He also warned that the move would cause the UK to immediately lose out on a staggering £75billion, despite it being far less reliant on Russia’s energy than the EU.

This also comes after the EU published its new energy strategy detailing how it would slash oil and gas imports by two thirds by the end of 2022, and scupper ties completely by 2030.

Mr Sunak reportedly told Conservative ministers during a cabinet meeting that £75billion would vanish from the UK economy “straight away”, a source close to the discussions told The Independent.

The result would also reportedly mean a recession in Britain in 2022.

This comes as energy bills coupled with surging inflation has sparked a crippling cost-of-living crisis in the UK.

Mr Johnson is now planning to set up an energy task force to ramp up the UK’s oil, gas and nuclear supplies amid Britain’s energy crisis.

It will involve having two senior industry experts reporting directly to the Prime Minister to advise on a “transition period’ using fossil fuels, despite having a target of net zero emissions by 2050.

A source who has seen the plan said: “We don’t want to be at the mercy of brutal dictators like Putin.”

This also comes after Mr Johnson stressed the need for the world to end its “addiction” to Russian hydrocarbons.

The Prime Minister has hinted at striking deals with partners in the Middle East like Saudi Arabia and the United Arab Emirates but failed to reach an agreement with to bolster oil deliveries on his visit to the region last week.

But the task may look to ramp up production of domestic oil and gas from the North Sea, as well as importing from Canada.

The Government is also said to be considering lifting the 2019 ban on fracking so the Britain can access its shale gas reserves.

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The EU is now reportedly considering following Britain and the US by sanctioning oil instead of gas in the fifth round of sanctions on Russia.

But as well as the warning from Mr Sunak, the bloc has also faced some pushback from Germany.

Germany is particularly reliant on Russia for its gas, which accounts for around 40 percent of its supplies.

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