Financial sector urged to cut Russian fossil fuel ties

24th March 2022

Web p5 Round up Financial sector urged to cut Russian fossil fuel ties CREDIT i Stock 538186592

Related Topics



Acoalition of NGOs and environmental groups have called on financial institutions to stop “propping up” the war in Ukraine by cutting ties with Russia’s fossil fuel industry. In a letter to CEOs, they call on insurers, banks and asset managers to end financing, investment, insurance coverage and other financial services to companies in the Russian industry, and divest from existing assets.

Oil and gas sales made up 36% of Russia’s budget last year and have allowed the country to build up US$470bn in foreign reserves. In addition, Morningstar estimates that 14% of ESG investment funds are exposed to Russia.

The NGO coalition – which includes Greenpeace, Rainforest Action Network and Sierra Club – has listed 60 major oil, gas, and coal companies either headquartered or active in Russia, which it believes should be excluded. “The war that Putin has begun by invading Ukraine is a stark reminder of the connection between justice, peace and climate change,” the letter states. “As the Ukrainian climate scientist and IPCC [Intergovernmental Panel on Climate Change] report co-author Svitlana Krakovska said, ‘human-induced climate change and the war on Ukraine have the same roots – fossil fuels – and our dependence on them,’ and the intensification of climate change will increase international tensions and conflicts.”

There are signs that national governments will look to increase fossil fuel production following Russian import bans. The UAE has indicated it will encourage fellow OPEC members to increase oil production after prices jumped by more than 30%, while several US oil majors have also signalled their intention raise output. Prime minister Boris Johnson has said that the

UK may have to increase its domestic gas and oil production, potentially opening the door to more drilling in the North Sea.

Image credit | iStock


Subscribe to IEMA's newsletters to receive timely articles, expert opinions, event announcements, and much more, directly in your inbox.

Transform articles

Is the sea big enough?

A project promoter’s perspective on the environmental challenges facing new subsea power cables

3rd April 2024

Read more

The UK’s major cities lag well behind their European counterparts in terms of public transport use. Linking development to transport routes might be the answer, argues Huw Morris

3rd April 2024

Read more

Tom Harris examines the supply chain constraints facing the growing number of interconnector projects

2nd April 2024

Read more

The UK government’s carbon capture, usage and storage (CCUS) strategy is based on optimistic techno-economic assumptions that are now outdated, Carbon Tracker has warned.

13th March 2024

Read more

The UK government’s latest Public Attitudes Tracker has found broad support for efforts to tackle climate change, although there are significant concerns that bills will rise.

13th March 2024

Read more

A consortium including IEMA and the Good Homes Alliance have drafted a letter to UK government ministers expressing disappointment with the proposed Future Homes Standard.

26th February 2024

Read more

Global corporations such as Amazon and Google purchased a record 46 gigawatts (GW) of solar and wind energy last year, according to BloombergNEF (BNEF).

13th February 2024

Read more

Three-quarters of UK adults are concerned about the impact that climate change will have on their bills, according to polling commissioned by Positive Money.

13th February 2024

Read more

Media enquires

Looking for an expert to speak at an event or comment on an item in the news?

Find an expert

IEMA Cookie Notice

Clicking the ‘Accept all’ button means you are accepting analytics and third-party cookies. Our website uses necessary cookies which are required in order to make our website work. In addition to these, we use analytics and third-party cookies to optimise site functionality and give you the best possible experience. To control which cookies are set, click ‘Settings’. To learn more about cookies, how we use them on our website and how to change your cookie settings please view our cookie policy.

Manage cookie settings

Our use of cookies

You can learn more detailed information in our cookie policy.

Some cookies are essential, but non-essential cookies help us to improve the experience on our site by providing insights into how the site is being used. To maintain privacy management, this relies on cookie identifiers. Resetting or deleting your browser cookies will reset these preferences.

Essential cookies

These are cookies that are required for the operation of our website. They include, for example, cookies that enable you to log into secure areas of our website.

Analytics cookies

These cookies allow us to recognise and count the number of visitors to our website and to see how visitors move around our website when they are using it. This helps us to improve the way our website works.

Advertising cookies

These cookies allow us to tailor advertising to you based on your interests. If you do not accept these cookies, you will still see adverts, but these will be more generic.

Save and close