The government has announced a ban on Russian diesel and jet fuel imports by New Year, a move designed to assert energy sovereignty. But as a City veteran who has seen markets twist on far lesser geopolitical whims, I find myself asking: at what price? Gilt yields have already ticked up on the news, reflecting investor unease.
The Treasury will need to borrow more to subsidise alternative supplies, and the Bank of England faces a fresh headache. Inflation, already stubborn, could get a second wind if British refineries cannot plug the gap. Meanwhile, capital flight is a real risk as foreign investors weigh the cost of this unilateral stance.
This is not a simple headline. It is a balance sheet decision for the nation.
