UK Loosens Russian Oil Sanctions Amid Fuel Price Surge

BBC Business reported Wednesday that the UK government has relaxed key Russian oil sanctions, allowing imports of diesel and jet fuel refined from Russian crude in third-party nations.

Hormuz Blockade Drives the Policy Shift

The change takes effect immediately and is directly tied to disruption at the Strait of Hormuz. The ongoing conflict involving the US, Israel, and Iran has effectively blocked the waterway. That closure triggered a sharp surge in European jet fuel prices, which more than doubled after hostilities began. Prices have since eased but remain roughly 50% above pre-conflict levels.

The RAC reported that average UK unleaded petrol hit 158.52 pence per litre on Monday. That marks the highest level since the conflict started. Several airlines have already cancelled routes or raised ticket prices in response to soaring fuel costs.

Treasury minister Dan Tomlinson told BBC Breakfast the waiver was “small and specific” and designed to protect supply of foundational goods. He framed it as a practical decision to support families facing cost-of-living pressure, while maintaining overall commitment to Ukraine.

A Reversal Years in the Making

Britain spent years anchoring international efforts to cut Russia’s oil revenues following the invasion of Ukraine. As recently as Tuesday, the UK co-signed a G7 statement pledging “severe costs” on Moscow. In October, the government had announced plans to block oil products refined from Russian crude in countries such as India and Turkey. That policy is now effectively suspended for an indefinite period, subject to periodic review.

The new rules cover LNG transport as well, through a time-limited licence running until 1 January.

Critics Push Back Hard

The move drew immediate cross-party fire. Labour’s foreign affairs committee chair, Dame Emily Thornberry, said Ukrainian allies were “very disappointed” by Britain’s retreat. She rejected comparisons to similar US and Spanish waivers, arguing that following others into bad policy does not justify the decision.

Conservative leader Kemi Badenoch questioned the logic of voting down new North Sea licences while simultaneously reopening the door to Russian-refined imports.

Energy analyst Robin Mills of Dubai consultancy Qamar Energy told BBC Radio 4 the waiver sends a damaging signal about Western sanctions credibility. He argued there was never a genuine risk of physical jet fuel shortages, making the concession both unnecessary and counterproductive on price.

The UK decision mirrors a US sanctions waiver extension announced earlier this week, which also faced sharp criticism from Ukraine and allied governments.

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