Britain loosens Russian fuel ban

Britain published a general trade licence on May 19 that lets importers keep bringing in diesel and jet fuel made from Russian crude if the refining happened in a third country, even as a new sanctions ban on those products took effect on May 20. The measure sits inside Britain’s latest Russia sanctions package and applies to “sanctioned processed oil products” under the Russia regulations, according to government notices. EU officials said the exemption was not flagged during this week’s G7 finance ministers’ meeting in Paris. British ministers said the step was tied to market disruption after the Strait of Hormuz crisis. ### Which fuels did Britain exempt, and when did the ban start? GOV.UK said on May 19 that the new prohibition covers oil products processed in a third country using Russian-origin crude oil, and that the rule came into effect on May 20. The same government update published a “General Trade Licence for sanctioned processed oil products” permitting activities that would otherwise be banned under the Russia sanctions regulations. (gov.uk) Politico reported that the licence exempts jet fuel and diesel from the new import ban when those fuels are made from Russian crude but refined in countries such as India. A U.K. explanatory memorandum for the 2026 amendment regulations said the new refined-oil ban could raise jet fuel and diesel prices in the short term. (gov.uk) ### Why did Britain say it made the change? Chris Bryant, Britain’s trade minister, told lawmakers the move was prompted in part by the need to shield businesses from energy-market instability, according to reporting cited in Politico. Other reports said ministers linked the licence to supply risks and price pressure after disruption around the Strait of Hormuz. (politico.eu) The U.K. government’s own explanatory note said the refined-oil ban could push up global diesel and jet fuel prices in the short term and squeeze firms reliant on transport and logistics. That document did not frame the issue as a change in sanctions policy toward Russia, but as a consequence the government expected from the ban itself. (politico.eu) ### Why did EU officials say they were caught off guard? Valdis Dombrovskis, the European Commission’s economy commissioner, said the British decision “came as a surprise,” Politico reported on May 21. He said the plan had not been raised at the G7 finance ministers’ meeting in Paris on Monday and Tuesday, where Britain was represented by Chancellor Rachel Reeves. (legislation.gov.uk) The European Union introduced its own ban on comparable third-country refined products in January, according to Politico’s report. That left Brussels facing questions this week about whether London and the bloc were still moving in step on a sanctions measure both sides had presented as a way to close a Russian crude loophole. (politico.eu) ### How large is the carve-out in practice? Centre for Research on Energy and Clean Air data cited by Politico showed diesel and jet fuel account for 99% of U.K. imports from refineries that process Russian crude. That means the two products covered by the licence represent nearly all of the trade targeted by the new British measure, according to the figures Politico cited. (politico.eu) Trade lawyers at Baker McKenzie and Squire Patton Boggs said the licence effectively disapplies part of the new prohibition for operational reasons. Their summaries described the measure as one of several fresh licences issued alongside the 2026 sanctions amendments. (eurotoday.org) ### What happens next? The Russia sanctions guidance on GOV.UK says the import prohibition in regulation 46Z9F applies from May 20, 2026, and the general trade licence is now part of the compliance framework importers must follow. Companies trading in covered products will need to use the published licence and related guidance as the operative documents. (sanctionsnews.bakermckenzie.com) G7 ministers ended their Paris meeting this week by reaffirming support for Ukraine and continued pressure on Russia, according to public reporting, while Britain’s licence remains in force under the updated U.K. sanctions regime. Any further tightening, amendment or withdrawal would be published through the same GOV.UK sanctions notices and statutory guidance pages. (politico.eu) (gov.uk)