UK Softens Russian Oil Sanctions Amid Strait of Hormuz Supply Shock

BBC Business reported Wednesday that Britain has pulled back from a planned ban on imports of diesel and jet fuel refined from Russian crude in third countries. The government will now phase the restrictions in gradually, citing acute supply disruption caused by the effective blockade of the Strait of Hormuz.

Why the UK Stepped Back on Russian Oil Sanctions

The original measure, announced last October, was designed to close a well-documented loophole. Despite earlier sanctions, large volumes of fuel refined from Russian crude were still reaching Britain via India and Turkey. The Centre for Research on Energy and Clean Air estimated roughly £1.8 billion worth of such products entered the UK through those two countries after the initial Russian oil ban took effect in December 2022.

The government said it had issued short-term licences allowing continued flexibility in UK supply and global markets. Officials denied this constituted a waiver, distinguishing it from a similar US move last month that drew sharp criticism internationally.

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The Hormuz Effect on European Fuel Markets

The Strait of Hormuz blockade has effectively halted transit of oil, liquefied natural gas, and other critical cargoes through the waterway. More than half of Europe’s jet fuel supply moves through the strait. European jet fuel prices have roughly doubled since before the US-Israel military campaign against Iran began. In late February, jet fuel traded near $831 per tonne in Europe. By early April it had spiked to around $1,838 per tonne. Prices have since eased to approximately $1,375 per tonne, but remain elevated.

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Critics Question the Signal Being Sent

Ukraine’s sanctions commissioner Vladyslav Vlasiuk acknowledged the UK’s rationale but pushed back publicly. He argued that even temporary exemptions risk funnelling additional revenue to Russia’s military operations.

Energy analyst Robin Mills, chief executive of Dubai consultancy Qamar Energy, said the move sends a negative signal about the durability of Russia sanctions under geopolitical pressure. He added the change was unlikely to push fuel prices lower in any meaningful way.

At Prime Minister’s Questions, Conservative leader Kemi Badenoch accused the government of backsliding on Ukraine commitments. Prime Minister Sir Keir Starmer defended the approach, telling MPs that existing sanctions remain fully intact and that new measures are simply being introduced in stages.

The UK also confirmed a ban on maritime transport of Russian LNG, though a time-limited licence permits continued shipments until 1 January.

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