Britain delays Russian oil sanctions

Britain delayed part of a new sanctions push against Russian oil this week, creating a carve-out for diesel and jet fuel refined in third countries from Russian crude. The move came as fuel markets were rattled by Middle East turmoil and concern over supply through the Strait of Hormuz, according to reporting by the Associated Press and other outlets. The decision complicated a package London had presented as a tighter squeeze on Kremlin revenues. It also exposed a gap with Brussels, which has already built the legal basis for a broader maritime services ban but says it still needs G7 coordination. ### Which sanctions did Britain actually change? The British government updated its guidance on May 19 to explain a new prohibition on importing oil products processed in third countries from Russian crude, and said the rules came into effect on May 20. The measure covers products under Harmonized System code 2710 and also bars related technical assistance, financial services and brokering by UK companies. (gov.uk) At the same time, Britain issued a general trade licence allowing imports of some otherwise prohibited products, including diesel and jet fuel refined abroad from Russian crude, according to Reuters reporting surfaced in search results and coverage by the Associated Press. That meant the legal ban was introduced, but some of the trade it was meant to stop could continue under licence. (gov.uk) ### Why did London make room for diesel and jet fuel? The Associated Press reported that British officials linked the easing to fuel-price pressure tied to the Iran war and the effective closure of the Strait of Hormuz. Al Jazeera, citing the British government, also reported that officials said the change was made amid soaring fuel prices and supply disruption. (msn.com) The Guardian reported that the reversal drew criticism from opponents and concern in Kyiv because London had previously said the measure would shut a route by which Russian oil could reach Britain after being refined in countries such as India and Turkey. Government guidance itself said third-country processing could allow Russian oil to enter the UK “via the back door,” and described the ban as a way to further reduce Kremlin revenues. (apnews.com) ### Why did Ukraine react so sharply? The Guardian reported that British diplomats were forced into what it described as a “salvage operation” to reassure Ukrainian officials after the decision. Euronews reported that the episode landed as G7 countries were trying to project unity on support for Ukraine and on sanctions enforcement. (theguardian.com) Kyiv’s concern was not only political. The British measure had been presented as part of a wider tightening of Russia sanctions, and any retreat on energy restrictions touches one of Moscow’s largest sources of export revenue. The UK explanatory memorandum says the 2026 regulations were designed to strengthen trade and transport sanctions and ban refined oil products made from Russian-origin crude. (theguardian.com) ### What is Brussels trying to do that goes further? The European Commission said on April 23 that the EU’s 20th sanctions package created the basis for a future prohibition on transporting Russian oil and petroleum products. The Commission said the maritime services ban would be taken forward “in full coordination and discussion with the G7 and the Price Cap Coalition,” with the Council deciding when it should enter into force. (legislation.gov.uk) That step would go beyond import restrictions by targeting the shipping and service infrastructure that still helps move Russian oil. The Commission said the measure would reduce available transport capacity for Russian oil, while the same package added 46 vessels to the EU’s shadow-fleet listings, bringing the total to 632. (ec.europa.eu) ### What happens next? The next formal milestone sits in Brussels, not London. The European Commission has already proposed the maritime-services step, but the EU says the Council will decide when it enters into force after coordination with the G7 and the broader Price Cap Coalition. In Britain, the updated guidance and the general trade licence published this week will determine how imports of third-country refined diesel and jet fuel are handled while that wider G7 debate continues. (ec.europa.eu)