The UK has eased parts of its Russia energy sanctions regime as rising fuel prices and concerns over supply disruption put pressure on ministers to protect key fuel supplies.
The waiver, which begins on Wednesday, allows certain fuels made from Russian crude oil to enter the UK if they have been refined in third countries. The change applies to products such as diesel and aviation fuel, and comes as global energy markets remain unsettled by disruption around the Strait of Hormuz following the outbreak of the U.S.-Israel war with Iran.
Restrictions linked to the transport of Russian liquefied natural gas have also been relaxed under a separate licence. The government said the wider sanctions regime against Moscow had continued to tighten, but argued that limited flexibility was needed to protect critical supply chains and maintain market stability.
The move could allow the UK to resume imports of jet fuel from refining hubs such as India, which had previously supplied large volumes to Britain and Europe. Turkey has also become an important processor of Russian crude, with refined products later sold into international markets.
The decision comes despite Britain’s long-standing support for sanctions against Russia over its full-scale invasion of Ukraine. On Tuesday, the UK joined other G7 members in reaffirming its “unwavering commitment” to impose “severe costs” on Moscow.
Fuel markets have come under intense strain since the Middle East crisis escalated. European jet fuel prices more than doubled at one point before easing, while petrol prices in the UK have continued to rise. The RAC said the average price of unleaded petrol reached 158.52p per litre on Monday, the highest level recorded since the start of the conflict.
Airlines have also been hit by higher aviation fuel costs, with some carriers cancelling flights or raising fares to manage increased operating expenses.
The government said the new arrangements for processed oil products would remain in place for an “indefinite duration,” although they will be reviewed periodically and could be amended or withdrawn. A separate time-limited licence covering maritime transport and related services for Russian LNG will run until 1 January.
Robin Mills, chief executive of Dubai-based energy consultancy Qamar Energy, told the BBC’s Today programme that the decision risked weakening the message behind sanctions and was unlikely to reduce prices in Britain.
“It is sending a negative signal that sanctions on Russia are potentially weaker because of the crisis in the gulf and that countries including the UK and the U.S. will back down on sanctions because of other issues,” he said.
The UK’s move follows a similar waiver by the United States, which U.S. Treasury Secretary Scott Bessent said in March was aimed at promoting “stability in global energy markets.”
French President Emmanuel Macron has said the Strait of Hormuz shutdown “in no way” justified lifting sanctions on Russia, while Ukrainian President Volodymyr Zelenskyy has warned that “every dollar paid for Russian oil is money for the war.”