Britain eases Russian oil curbs

Britain said on May 20 it had tightened, not loosened, its Russia sanctions regime by banning imports of oil products processed in third countries from Russian crude, while issuing what ministers called a temporary licence for diesel and jet fuel. The move followed supply disruption linked to the Strait of Hormuz and prompted criticism from opposition lawmakers and surprise in Brussels. EU economy commissioner Valdis Dombrovskis said London’s decision “came as a surprise” to the bloc and had not been raised at the G7 finance ministers’ meeting this week. UK ministers said the licence was targeted and temporary, and that the broader sanctions package still reduced Russian oil revenues. ### Did Britain actually ease sanctions, or tighten them? The UK government’s formal position is that it did both at once. Guidance published by the Department for Business and Trade says a new prohibition on importing oil products processed in a third country using Russian crude was introduced on May 19 and took effect on May 20. That measure covers products under HS code 2710, including petroleum oils and related preparations, when they were processed outside the UK from Russian-origin crude. (gov.uk) Chris Bryant, the trade minister, told Parliament on May 20 that the sanctions regime was “tougher than it was yesterday or last week” because the UK was, for the first time, banning imports of Russian oil products processed in a third country. In the same statement, Bryant said the government had issued “a targeted temporary licence” to allow continued imports of diesel and jet fuel because of “the situation in the middle east.” (gov.uk) ### What exactly did the temporary licence cover? Chris Bryant said the licence allowed the continued import of diesel and jet fuel that would otherwise have been caught by the new third-country processed oil restrictions. He told lawmakers the licences were “temporary and targeted” and would be reviewed “regularly and repeatedly,” adding that they would be suspended “as soon as we possibly can.” (hansard.parliament.uk) India Today reported that the practical effect was to permit fuel refined in countries including India and Turkey from Russian crude to re-enter the British market. The report said the licence was published after disruption tied to the closure of the Strait of Hormuz sent fuel prices sharply higher in Europe. (hansard.parliament.uk) ### Why did fuel from India and Turkey become the focus? The UK’s earlier oil ban took effect on Dec. 5, 2022, and covered the import, acquisition, supply and delivery of Russian oil and oil products into the country. Government guidance published in 2023 said Britain had aligned that approach with the EU and G7 partners. The new 2026 measure was designed to close what the government described as a “back door” route by which Russian crude could be refined elsewhere and then imported into the UK as a non-Russian product. (indiatoday.in) The May 2026 licence created an exception to that new rule for specific fuels during a supply shock. India Today said the trigger was the Strait of Hormuz crisis, which disrupted flows of jet fuel and diesel into Europe. ### What did Brussels say about the British move? Valdis Dombrovskis said Britain’s decision was not discussed with EU counterparts at the G7 finance ministers’ meeting, according to the briefing material provided for this story. (gov.uk) The preliminary reporting cited by the editor said Dombrovskis described the move as having “came as a surprise” to the European Union. (indiatoday.in) The UK government’s own guidance says its third-country processed oil ban was intended to align with the EU approach and “maximise the impact” on Russia. That made the temporary licence politically sensitive because it carved out an energy-security exception at the same time London was presenting the new rules as a tightening of sanctions. (indiatoday.in) ### What happens next? The Department for Business and Trade said the new prohibition is now in force and requires importers to provide evidence showing whether oil products processed in third countries were made from Russian crude. Chris Bryant told Parliament the temporary diesel and jet fuel licences would be reviewed repeatedly and suspended as soon as possible. Any further change is likely to appear through updated UK sanctions guidance or additional parliamentary statements. (gov.uk)