UK Loosens Russian Oil Sanctions Amid Rising Fuel Prices
BBC Business reported Tuesday that the UK government has softened Russian oil sanctions, allowing imports of diesel and jet fuel refined from Russian crude in third-party countries. The move takes effect Wednesday and is directly linked to the ongoing blockade of the Strait of Hormuz.
Hormuz Blockade Strains Global Fuel Supply
The effective closure of the Strait of Hormuz, following the outbreak of the US-Israel conflict with Iran, has severely disrupted fuel supply chains. European jet fuel prices more than doubled after fighting began. Prices have since eased but remain roughly 50% above pre-conflict levels. UK pump prices have not followed that partial recovery. The RAC reported the average price of unleaded petrol hit 152.52p per litre on Monday. That marks the highest level recorded since the conflict began. Airlines worldwide have cut routes and imposed surcharges in direct response to jet fuel costs.
What the Waiver Covers
The new rules remove restrictions on importing jet fuel and diesel that were originally refined from Russian crude oil in nations such as India and Turkey. India had previously been a significant supplier of processed fuel to UK and European markets. The government also granted a time-limited licence covering maritime transport of Russian liquefied natural gas, valid through January 1. Officials described the new exemptions as indefinite in duration but subject to periodic review or revocation. London simultaneously announced additional export and import prohibitions targeting Russian uranium and refined oil products.
Background: A Difficult Diplomatic Balancing Act
For years, the UK positioned itself as a leading architect of economic pressure on Moscow over its invasion of Ukraine. As recently as Tuesday, London co-signed a G7 statement pledging unwavering commitment to imposing severe costs on Russia. The US previously drew sharp criticism from European allies when it issued a comparable waiver in March. French President Emmanuel Macron argued the Hormuz shutdown provided no justification for relaxing Russia pressure. Ukrainian President Volodymyr Zelensky has publicly warned that every dollar spent on Russian oil finances Moscow’s war machine. UK Foreign Secretary Yvette Cooper had declined to criticise Washington’s earlier decision, framing it as a narrow, targeted measure.
Government Defends Tougher-and-Softer Approach
A government spokesperson insisted the overall sanctions regime had grown stricter. Officials pointed to new maritime service restrictions on Russian LNG shipping and insurance as evidence of escalating economic pressure. The waiver, they argued, protects critical domestic supply chains without undermining the broader sanctions framework. Whether allies accept that framing remains to be seen.
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