UK delays some oil sanctions

Britain delayed parts of a new round of Russia energy sanctions on May 20 as the Iran war and the closure of the Strait of Hormuz pushed up fuel prices and tightened supplies. The UK government still brought broader amendments to its Russia sanctions regime into force on Wednesday, but paired them with general licences that allow some activity that would otherwise be banned. Those licences cover diesel and jet fuel refined outside Russia from Russian crude, and some maritime transportation tied to Russian liquefied natural gas projects. The move drew criticism from European officials and came after Washington renewed a waiver for Russian cargoes already at sea. ### Which sanctions did Britain delay in practice? The May 20 UK amendments introduced new prohibitions on importing into Britain refined oil products processed outside Russia from Russian-origin crude, according to a legal summary by Baker McKenzie based on the published regulations. At the same time, the Office of Trade Sanctions Implementation issued general licences permitting certain otherwise restricted activity involving diesel and jet fuel processed outside Russia. (sanctionsnews.bakermckenzie.com) The same package also created new restrictions on maritime transportation of Russian LNG and related services. A parallel general licence permits transportation and related services for certain projects and contracts, with the licence in force from May 20 and valid until January 1, 2027, the legal summary said. (sanctionsnews.bakermckenzie.com) ### Why did London make an exception now? The British government said the changes were aimed at cushioning consumers and businesses from a jump in energy costs linked to the Middle East conflict, according to reports by Al Jazeera, the Associated Press and NBC News. Those reports said the Iran war and the prolonged closure of the Strait of Hormuz had driven up prices for diesel, jet fuel and other supplies. (sanctionsnews.bakermckenzie.com) A U.S. waiver was part of the backdrop. Al Jazeera reported that Britain’s move followed a renewed American waiver for Russian oil cargoes already at sea, a step justified by pressure on global energy supplies. ### What exactly is still allowed? The clearest immediate effect is that the UK can continue to receive some fuels refined in third countries such as India and Turkey even if the crude originally came from Russia, according to Al Jazeera, AP and NBC News. (aljazeera.com) That narrows the impact of the new import ban at a time when Britain is trying to avoid further pressure on pump prices and aviation fuel costs. The LNG carve-out is narrower. Baker McKenzie’s summary says the licence applies to maritime transportation and related services for certain Russian LNG projects and certain contracts, rather than a blanket reopening of all Russian gas trade. (aljazeera.com) ### How did Europe react? The European Union said it would maintain its own line on Russia. Euronews reported that Brussels criticized Washington’s waiver extension and sought to reassure member states that the bloc would stand firm on measures aimed at squeezing Russia’s war economy. London moved to argue that it had not reversed its broader sanctions policy. (sanctionsnews.bakermckenzie.com) Euronews said British officials tried to present the licences as limited and technical rather than a lifting of core restrictions, even as allies questioned the signal sent by the change. ### Does this replace Britain’s wider Russia sanctions drive? (euronews.com) Britain’s wider sanctions framework still expanded on May 20. The same amendment regulations added import restrictions on uranium, export controls on industrial and technology-related goods, construction-services sanctions and additional shipping measures, according to the legal summary. (euronews.com) The UK had also announced a tougher line on Russian oil months earlier. A British government statement from October 2025 said London was targeting Russian oil companies and businesses supporting the Kremlin’s war effort. ### What comes next? The next formal test of allied coordination is the G7 summit in Évian-les-Bains, France, scheduled for June 15-17. (sanctionsnews.bakermckenzie.com) Britain, the United States and EU governments are expected to face questions there over how far sanctions policy can remain aligned while energy markets stay under pressure. (euronews.com) (gov.uk)