UK eases new sanctions on Russia to boost diesel, jet fuel supply

Britain will allow imports of diesel and jet ⁠fuel refined abroad from Russian crude ⁠under a sanctions carve-out, watering down restrictions to help ensure supply at home as prices soar due to the conflict in the Middle East.

A trade license that came into effect on Wednesday permits the import of Russian oil that has been refined into jet fuel and diesel in third countries such as India and Türkiye, opening up more supplies for Britain.

The U.S.-Israeli war on Iran and Tehran’s retaliatory grip on the Strait of Hormuz, through which about a fifth of the world’s oil usually passes, has sent fuel prices soaring around the world and sparked concerns about a shortage of jet fuel.

Opposition Conservative Party leader Kemi Badenoch accused the British government of “choosing to buy dirty Russian oil.”

But Prime Minister Keir Starmer said the government is phasing in a package of sanctions announced in October and has issued a “targeted short-term” license for the refined products to protect British consumers in a volatile situation.

“So, these are new sanctions being phased in. This is not a question of lifting existing sanctions in any way whatsoever,” he said in the House of Commons.

The licenses have no end date, but the government said they would be reviewed periodically and can ‌be amended or revoked.

National interest comes first

Britain has been one of Ukraine’s strongest allies since Russia’s full-scale invasion in 2022, and the government insists its sanctions against Russia remain among the toughest in the world.

But lawmaker Emily Thornberry, who chairs parliament’s foreign affairs committee, said Ukrainians would “feel very let down” by the move. She said Ukraine’s allies should keep squeezing Russia’s oil industry because it “is absolutely crippling their economy.”

Junior Treasury Minister Dan Tomlinson said while Britain’s support for Ukraine remains steadfast, ⁠the national interest had to come first, and therefore a loosening of certain sanctions for now made sense.

“We have to make sure that we protect the security of supply for really important foundational goods in our economy, such as jet oil,” Tomlinson told the BBC on Wednesday.

The move follows a similar step by the U.S., which has also eased Russian sanctions. Earlier this week, Treasury Secretary Scott Bessent extended a 30-day sanctions waiver allowing the purchase of Russian oil shipments already at sea.

On Tuesday, finance ministers from the U.S., Britain and the other Group of Seven (G-7) wealthy nations issued a joint statement reaffirming “our unwavering commitment to continue to impose severe costs on Russia in response to its continued aggression against Ukraine.”

Thousands of sanctions remain

Since Russia launched a full-scale invasion of Ukraine, ⁠Britain ⁠has sanctioned more than 3,200 individuals, businesses and ships under its Russia sanctions regime, to try to disrupt Russia’s actions and help Kyiv.

Brent crude on Wednesday was trading at around $110 a barrel, near recent highs, reflecting concerns over disrupted flows through the Strait of Hormuz.

Critics said the changes will allow the Kremlin to earn more money ⁠and fund the war against Ukraine.

Tomlinson defended the change as a “sensible decision” to help ensure the security of supply and help industry, airlines and households with rising prices. He said Britain continued to support Ukraine by providing billions of pounds of military equipment and through the multiple sanctions that remain.

Airlines in April warned about potential shortages of jet fuel supplies for the summer, but recently struck a more bullish tone on availability, although carriers worldwide have hiked fares and ⁠some have ‌cut flights.

Separately, Britain on Tuesday issued a time-limited licence covering the maritime transportation of liquefied natural ⁠gas from Russia’s Sakhalin-2 and Yamal projects and related services – including ⁠shipping, financing and brokering – under Russia sanctions rules, running until Jan/ 1 next year.

Sakhalin-2, ⁠based in Russia’s Far East, and Yamal LNG in the Arctic, are among the country’s largest gas export projects.

DAILYSABAH