Britain delays oil sanctions

Britain delayed part of a new sanctions package on May 20, allowing imports of diesel and jet fuel refined in third countries from Russian crude to continue as fuel prices climbed during the Middle East crisis. The carve-out came into force the same day a broader British ban on third-country processed Russian oil products was introduced, according to U.K. government guidance. Prime Minister Keir Starmer said in parliament the move was not a lifting of existing sanctions, while ministers said it was intended to shield consumers and businesses from supply disruption. Kyiv and European officials responded with concern as Britain tried to explain the decision to allies. ### Which Russian oil products did Britain keep allowing? The U.K. government said the delayed restriction covers diesel and jet fuel refined in third countries from Russian-origin crude oil. Government guidance published on May 19 said a prohibition on importing third-country processed oil products using Russian crude was introduced that day and took effect on May 20 under Regulation 46Z9F. (gov.uk) A trade licence that took effect on May 20 allows those imports to continue for now, according to Reuters and the Associated Press. The products can be refined in countries such as India and Turkey before entering Britain, creating a route for Russian crude to remain in the supply chain even though direct bans on Russian-origin oil remain in place. (gov.uk) ### Why did ministers say they were delaying the ban? Chris Bryant, a trade department minister, said the government acted “in the light of the situation in the Middle East” and intended to suspend the carve-out as soon as possible, Reuters reported. Starmer told lawmakers the measure was a “targeted short-term” step and said the sanctions package announced in October was being phased in rather than reversed. (hydrocarbonprocessing.com) Brent crude traded at about $109 a barrel on May 20, Reuters reported, roughly 50% above levels before the Iran war. The Associated Press said the effective closure of the Strait of Hormuz, through which about a fifth of the world’s oil usually passes, had pushed up fuel prices and raised concern about jet-fuel shortages. (hydrocarbonprocessing.com) ### How does this square with Britain’s earlier policy? Rachel Reeves and Yvette Cooper said in an October 15, 2025 government statement that Britain was taking Russian oil “off the market” and widening sanctions pressure on Kremlin energy revenues. That package was presented as part of a tougher effort to stop Russian crude and its global enablers from financing Moscow’s war in Ukraine. (hydrocarbonprocessing.com) The May 19 guidance said the new third-country processing ban was designed to stop Russian oil entering the U.K. by the “back door” and to align Britain’s approach with the European Union. The temporary licence therefore created an immediate exception to a measure the government had just described as a way to further reduce Kremlin revenues. (gov.uk) ### What did Ukraine and British critics say? Kemi Badenoch, the Conservative leader, told Starmer in parliament that the government had chosen to “buy dirty Russian oil.” Emily Thornberry, the Labour chair of the Foreign Affairs Committee, said Ukrainians would feel “very let down” by the move. (gov.uk) A senior Ukrainian official told the Associated Press that Kyiv was “clarifying the details” with British officials and said there was “very active communication” between diplomats, President Volodymyr Zelenskyy’s office and London. Starmer spoke with Zelenskyy on May 20 and, according to Downing Street, reaffirmed Britain’s support for Ukraine and outlined steps to increase pressure on Russia’s economy. (hydrocarbonprocessing.com) ### Why are Brussels and the G7 watching this so closely? Valdis Dombrovskis, the EU economy commissioner, said on May 20 that “from the EU point of view, we do not think that this is the time to ease pressure on Russia” after Washington extended a separate waiver on Russian seaborne oil purchases for vulnerable countries. Euronews reported that EU officials were still trying to rally G7 partners behind tougher oil measures, including a broader crackdown on maritime services for Russian tankers. (nbcnews.com) The British licence has no end date, according to the Associated Press, but the government said it would be reviewed regularly. That review process, along with continued contacts between London, Kyiv and G7 partners, is the next formal point at which Britain’s temporary carve-out could be tightened or withdrawn. (nbcnews.com) (hydrocarbonprocessing.com)