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Was corporate lobbying responsible for a change in Government policy on Russian oil?

1.1.3 – Pressure groups and other influences

 

It was announced on 20 May that the UK Government was delaying its proposed ban on imports of aviation fuel derived from Russian oil. This is due to the ongoing blockade of the Strait of Hormuz, which has put significant pressure on fuel supplies.

The decision to give a reprieve to Russian oil – which has to be refined in a third country – has been met with some criticism as it delays doing further damage to the Russian economy over its ongoing war in Ukraine. Estimates have suggested that since the start of the war, nearly £2bn worth of oil products have entered the UK made from Russian oil, following refinement in India and Turkey.

Whilst it is difficult to say precisely why the government have delayed their proposed ban at this precise moment, some speculation points to the involvement of global lobbying firm FTI Consulting, whose clients include British Airways, Virgin Atlantic, as well as the owners of Heathrow and Luton airports. The surging cost of jet fuel had led to increased speculation of flight cancellations and the spiralling cost of summer holidays. The government’s recent announcement will go some way to allaying these fears, which will be of great financial benefit to the aviation industry.

Lobbying is quite an opaque business, whose successes are seldom advertised. One of the things that makes lobbying firms effective is employing people from the public sector (e.g. former ministers and civil servants), which helps them achieve insider status similar to that enjoyed by pressure groups, whilst also giving the industry greater corporate awareness of how decisions are taken at government level. Whilst there are rules in place to regulate lobbying, these are often difficult to enforce.

Governments do not acknowledge when the decisions they take are influenced by lobbyists, in order to prevent further pressure being brought to bear on them. However, the lobbying sector undoubtedly has the ability to wield significant influence, particularly on behalf of industries that employ large numbers of workers or play an important strategic role in the UK economy.

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