UK Government Eases Russian Diesel and Jet Fuel Sanctions Amid Supply Concerns
The UK government has announced a loosening of strict sanctions previously imposed on Russian oil refined in third countries, specifically impacting diesel and jet fuel. This policy shift, effective from Wednesday, reflects growing anxieties over the supply of these fuels, particularly following the effective blockade of the crucial Strait of Hormuz waterway since the commencement of the US-Israel conflict with Iran. Concurrently, some restrictions on the maritime transportation of Russian liquefied natural gas (LNG) have also been lifted.
Official statements maintain that the overarching sanctions regime against Russia remains robust, yet these "extra flexibilities" are deemed necessary. This move mirrors a similar action taken by the United States earlier in the year, which drew considerable criticism from various Western and allied nations. European jet fuel prices saw an initial doubling after the regional conflict escalated, now settling at approximately fifty per cent above pre-conflict levels, while UK pump prices continue their ascent. The motoring organisation RAC reported that the average price of unleaded petrol reached £1.52 per litre on Monday, the highest since the onset of the conflict.
For years, the UK had positioned itself at the forefront of international efforts to exert economic pressure on Russia following its 2022 invasion of Ukraine. Just a day prior to this announcement, the UK was a signatory to a G7 declaration reaffirming an "unwavering commitment" to levy "severe costs" on Russia. Since October, the UK had prohibited the import of diesel and jet fuel derived from Russian crude oil processed in third countries. The easing of these sanctions will effectively permit jet fuel imports from nations such as India, which historically served as a significant supplier to the UK and European markets. Turkey also refines substantial volumes of Russian crude.
The newly introduced regulations for sanctioned processed oil products are of "indefinite duration," though they are subject to periodic review and potential amendment or revocation. Furthermore, a time-limited licence covering the maritime transportation of LNG and related services under Russia sanctions rules has been issued, valid until 1 January. In March, the US extended a comparable waiver, initially introduced to allow the purchase of Russian oil and petroleum already loaded onto vessels at sea. US Treasury Secretary Scott Bessent had characterised this as a "short-term measure" aimed at promoting "stability in global energy markets."
Critics, including French President Emmanuel Macron and Ukrainian President Volodymyr Zelensky, argue that such waivers undermine efforts to constrain Russia's war economy. Zelensky explicitly stated that "every dollar paid for Russian oil is money for the war." However, UK Foreign Secretary Yvette Cooper had previously refrained from criticising the US decision, terming it a "specific, targeted issue." A UK government spokesperson reiterated on Tuesday that a "range of new prohibitions under the Russia sanctions regime" had been introduced, aiming to "strengthen our sanctions on Russia to degrade its ability to wage war in Ukraine, whilst protecting critical supply chains and maintaining market stability."
