UK Quietly Softens Russian Oil Sanctions Amid Fuel Price Surge
BBC Business reported Wednesday that the UK government has scaled back planned Russian oil sanctions, opting to phase in rather than immediately enforce a ban on diesel and jet fuel derived from Russian crude and routed through third countries.
Hormuz Blockade Forces Policy Rethink
The policy shift stems directly from the effective closure of the Strait of Hormuz since the outbreak of the US-Israel conflict with Iran. More than half of Europe’s jet fuel passes through the strait. The supply disruption has pushed European jet fuel prices to nearly double pre-war levels. Prices hit roughly $1,838 per tonne in early April, up from $831 per tonne in late February. They have since eased to around $1,375.
The UK government confirmed it had issued targeted, time-limited licences within the refined oil import ban. Officials said the approach would allow the full ban to be phased in without triggering further market instability. The Foreign Office rejected the characterisation of the move as a sanctions waiver.
Background: The Loophole That Sparked the Original Ban
The original sanctions measure was announced in October 2025, following BBC reporting in 2024 that revealed millions of barrels of Russian-origin fuel were still reaching Britain through gaps in global trade rules. The plan was designed to close a route by which Russian crude, refined in countries such as India and Turkey, could re-enter UK supply chains. India had been a major jet fuel supplier to UK and European markets via precisely that channel.
The UK also confirmed a separate ban on maritime transport of Russian liquefied natural gas. A time-limited licence, however, will permit that trade to continue until 1 January.
Also Read: What the Strait of Hormuz Closure Means for Global Energy Markets
Critics Question the Timing and the Rationale
Energy analyst Robin Mills, chief executive of Dubai-based consultancy Qamar Energy, pushed back on the government’s justification. Speaking to the BBC, he said the measure was unlikely to reduce fuel prices and would not address the underlying supply gap. He added that the policy sent a negative signal about Western resolve on Russia sanctions at a moment of geopolitical stress.
Opposition leader Kemi Badenoch also criticised the decision, arguing the government had quietly reversed course on Russian oil after months of public commitments to Ukraine. Treasury minister Dan Tomlinson defended the change as small, specific, and time-limited, saying the government had to protect foundational goods like jet fuel while remaining committed to Ukraine.
Ryanair chief executive Michael O’Leary said this week the risk of an actual fuel shortage remained close to zero, though other carriers have already cut flights in response to higher costs.
Read Next: Strait of Hormuz Crisis: What It Means for Summer Flights and Fuel Costs
