UK Loosens Russian Oil Sanctions Amid Hormuz Supply Crunch

BBC Business reported Wednesday that the UK government has loosened its Russian oil sanctions, allowing imports of diesel and jet fuel refined from Russian crude in third countries such as India and Turkey.

The move takes effect immediately and was driven by mounting supply anxieties tied to the effective blockade of the Strait of Hormuz following the outbreak of the US-Israel conflict with Iran. A separate time-limited licence covering maritime transportation of Russian liquefied natural gas runs until 1 January.

Fuel Prices Force a Policy Pivot

UK motorists are already feeling the strain. The RAC recorded average unleaded petrol prices at 158.52p per litre on Monday, the highest since the Iran conflict began. European jet fuel costs more than doubled at the height of the crisis and remain roughly 50% above pre-conflict levels. Several airlines have cancelled routes and raised ticket prices in response.

Treasury minister Dan Tomlinson defended the decision as “small and specific,” telling the BBC the waiver was designed to protect supply security for foundational goods including jet fuel, while insisting the government remained committed to supporting Ukraine.

Background: Years of Tightening Sanctions

Britain spent years positioning itself as a leading force behind international economic pressure on Moscow over its war in Ukraine. As recently as Tuesday, the UK co-signed a G7 statement pledging “severe costs” on Russia. In October the government had announced plans to ban oil products refined from Russian crude in third countries, making this week’s reversal a notable shift.

The US made a comparable move earlier this year, extending a waiver it first introduced in March, though that decision drew sharp criticism from Kyiv and allies.

Critics Call the Waiver Unnecessary and Damaging

Opposition was swift and pointed. Robin Mills, chief executive of Dubai-based consultancy Qamar Energy, told BBC Radio 4 the waiver sends a damaging signal that sanctions on Russia are negotiable under pressure. He argued no genuine physical shortage of jet fuel was ever likely, making the policy both ineffective and harmful to Western credibility.

Labour foreign affairs committee chair Dame Emily Thornberry said Ukrainian contacts had expressed deep disappointment overnight. Conservative leader Kemi Badenoch called the decision contradictory, noting that Labour MPs had voted against new North Sea licences only the day before.

The government said the new rules carry “indefinite duration” but will be reviewed periodically and can be revoked.

Read Next: What the Strait of Hormuz Blockade Means for Global Energy Markets