UK Softens Russian Oil Sanctions Amid Fuel Price Surge

BBC Business reported Wednesday that the UK government has pulled back from a planned ban on imports of jet fuel and diesel derived from Russian crude oil, choosing instead to phase the measures in gradually over coming months.

Supply Shock Forces Policy Shift

The retreat follows severe disruption to global fuel markets caused by the effective blockade of the Strait of Hormuz since the start of the US-Israel conflict with Iran. More than half of Europe’s jet fuel moves through the strait, and prices on the continent have nearly doubled since fighting began. European jet fuel traded at roughly $831 per tonne in late February. By early April it had spiked to $1,838 before retreating to around $1,375 currently.

The Foreign Office rejected the word “waiver,” insisting the government was issuing “targeted” short-term licences to preserve supply flexibility. Officials said rules would be reviewed regularly and structured to allow a full ban without triggering market instability.

Background: How the Loophole Emerged

The original ban was announced in October last year after the BBC revealed in 2024 that millions of barrels of Russian-origin fuel were reaching the UK through third-country refining, bypassing earlier sanctions. The Centre for Research on Energy and Clean Air estimated the UK had imported roughly £1.8 billion worth of such products via India and Turkey since the first Russian oil ban took effect in December 2022. Much Russian crude is processed in Turkey, while India had been a significant jet fuel supplier to both the UK and Europe.

Ukraine and Critics Push Back

Ukraine’s sanctions commissioner Vladyslav Vlasiuk said he understood the reasoning but disagreed with the approach, warning that temporary exemptions could still funnel revenue into Russia’s war effort. Energy consultant Robin Mills, chief executive of Dubai-based Qamar Energy, called the move a “negative signal,” arguing it would not meaningfully lower fuel prices while weakening the broader sanctions framework.

Political Fallout at Westminster

The decision drew sharp criticism in parliament. Conservative leader Kemi Badenoch accused Prime Minister Sir Keir Starmer of backsliding on Ukraine commitments. Starmer defended the policy, telling MPs new sanctions were being phased in rather than abandoned. Separately, the UK confirmed a ban on maritime transportation of Russian LNG, though a time-limited licence allows existing shipments to continue until 1 January.

Ryanair chief executive Michael O’Leary this week dismissed fuel shortage fears as overblown, though rival carriers have already cancelled flights citing the cost surge.

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