The UK government has announced a loosening of stringent sanctions on Russian oil that has been refined into diesel and jet fuel in third countries, a move prompted by escalating fuel prices and growing supply concerns. This policy adjustment, set to begin on Wednesday, comes in response to the effective blockade of the Strait of Hormuz, a critical maritime route, since the commencement of the US-Israel conflict with Iran. Additionally, certain sanctions pertaining to the transportation of Russian liquefied natural gas (LNG) have also been relaxed.
A government spokesperson stated that while the overall sanctions regime against Russia has been intensified, specific flexibilities were deemed necessary to address current market conditions. This decision follows a similar, albeit criticized, move by the United States. European jet fuel prices, which more than doubled following the outbreak of the war, remain approximately 50% higher than pre-conflict levels, while pump prices in the UK continue their upward trajectory.
According to the motoring organization RAC, the average price for a liter of unleaded petrol reached 152.52 pence on Monday, marking the highest point since the conflict began. The surge in jet fuel costs has already led several airlines operating in the UK and globally to cancel flights and increase fares. This development occurs just days after the UK signed a G7 statement on Tuesday, reaffirming its commitment to imposing severe economic consequences on Russia.
Previously, since October, the UK had prohibited the import of diesel and jet fuel that had been refined from Russian crude oil in third countries. The new regulations will permit imports of jet fuel from nations like India, which has become a significant supplier to the UK and Europe, and from countries such as Turkey, where substantial Russian crude oil refining takes place. The government indicated that these revised rules for sanctioned processed oil products would be of indefinite duration, subject to periodic review and potential amendment or revocation.
In parallel, the UK has issued a time-limited license, effective until January 1, that covers the maritime transportation of LNG and associated services under existing Russia sanctions. This measure aims to provide temporary relief for the energy market. The government also noted that airlines would be permitted to cancel flights in advance due to fuel shortages under new contingency plans.
The US had earlier extended a similar waiver, initially introduced in March, which eased restrictions on countries purchasing Russian oil and petroleum already loaded onto vessels at sea. US Treasury Secretary Scott Bessent had described this as a "short-term measure" intended to foster "stability in global energy markets." However, this policy has drawn criticism from many US and UK allies, who argue that it benefits the Russian government and its ongoing military actions in Ukraine.
French President Emmanuel Macron has asserted that the disruption in the Strait of Hormuz does not justify lifting sanctions on Russia. Similarly, Ukraine's President Volodymyr Zelensky has stated that "every dollar paid for Russian oil is money for the war." In contrast, UK Foreign Secretary Yvette Cooper, when addressing the US decision in March, characterized it as a "specific, targeted issue" and refrained from direct criticism.
A UK government spokesperson highlighted on Tuesday that the nation had implemented "a range of new prohibitions under the Russia sanctions regime." These include further import and export bans, restrictions on the sale of refined oil products derived from Russian crude oil, and prohibitions on the import, supply, and delivery of Russian uranium to third countries. The sanctions also encompass a maritime services ban on Russian LNG, designed to gradually limit Russia's access to the UK's leading shipping and insurance services, thereby hindering its capacity to transport LNG. The spokesperson reiterated the UK's commitment to strengthening sanctions against Russia to impede its war efforts while simultaneously safeguarding critical supply chains and ensuring market stability.
