UK Loosens Russian Oil Sanctions Amid Rising Fuel Prices

BBC Business reported Wednesday that the UK government has softened its Russian oil sanctions regime, issuing a waiver that permits imports of diesel and jet fuel refined from Russian crude in third-party countries.

Hormuz Blockade Forces Policy Shift

The waiver, which took effect Wednesday, is a direct response to fuel supply disruption caused by the ongoing blockade of the Strait of Hormuz. The waterway has been effectively closed since the US and Israel launched military action against Iran. European jet fuel prices more than doubled in the immediate aftermath. They remain roughly 50% above pre-conflict levels. UK petrol prices have continued climbing, with the RAC recording an average of 158.52 pence per litre Monday. That is the highest reading since the conflict began. Several airlines have already cancelled routes and increased fares to offset surging fuel costs.

What the Waiver Actually Covers

The new exemption will allow jet fuel imports from India, which processes significant volumes of Russian crude oil. Turkey is another major refiner of Russian crude affected by the change. A separate, time-limited licence covering maritime transportation of Russian LNG was also issued, running through 1 January. Officials stressed the overall sanctions package had been tightened, pointing to new export and import bans and fresh restrictions on Russian uranium sales.

Background: Years of Pressure Now Under Strain

For years, Britain positioned itself at the front of international efforts to isolate Moscow economically following Russia’s full-scale invasion of Ukraine in 2022. Just Tuesday, the UK co-signed a G7 statement pledging continued “severe costs” against Russia. The current move mirrors a similar US waiver extended earlier this week, first introduced in March by Treasury Secretary Scott Bessent. That decision drew sharp criticism from allies. French President Emmanuel Macron argued the Hormuz closure provided no justification for relaxing Russia pressure. Ukrainian President Volodymyr Zelensky warned that every dollar spent on Russian oil funds the war machine.

Critics Question the Logic

Not everyone accepts the supply-crisis rationale. Robin Mills, chief executive of Dubai-based consultancy Qamar Energy, told the BBC the waiver sends a damaging signal about sanctions credibility. He argued physical shortages of jet fuel were never genuinely likely, making the measure both unnecessary and ineffective at lowering prices. The government, meanwhile, defended the step as a targeted effort to protect critical supply chains without abandoning the broader sanctions framework.

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