UK delays oil sanctions

Britain delayed part of a new sanctions crackdown on Russian oil products on May 20 by issuing a general trade licence that allows imports of some fuels refined in third countries from Russian crude. The licence covers diesel and jet fuel and took effect the same day the broader ban on third-country processed oil products came into force, according to U.K. government notices. Prime Minister Keir Starmer said the move was a limited step to protect consumers as fuel markets tightened during the Middle East conflict. European officials and Ukraine reacted with concern, while Sweden called for tougher restrictions instead. ### What exactly did Britain delay? The U.K. government published new Russia sanctions rules on May 19 and brought them into force on May 20, banning imports of oil products processed in third countries from Russian-origin crude. At the same time, it issued a general trade licence exempting products under specific commodity codes for diesel and jet fuel. (gov.uk) The licence is of “indefinite duration” and will be periodically reviewed, according to the Department for Business and Trade notice cited by Channel News Asia. That means the ban exists in law, but some of the most commercially important refined products can still enter the British market under licence. ### Why did Keir Starmer say the government made the change? (gov.uk) Starmer said on May 20 that the government was issuing “two targeted short-term licences to phase the new sanctions in and to protect UK consumers.” He said the move did not amount to lifting existing sanctions and said Britain would keep working with allies on further packages. (channelnewsasia.com) Channel News Asia reported that the government also issued a temporary licence affecting liquefied natural gas from certain Russian plants, as pressure on energy markets increased. Starmer later told Ukrainian President Volodymyr Zelenskyy that Britain’s actions would leave “less Russian oil on the market, with Russia weaker as a result,” according to Downing Street. (channelnewsasia.com) ### Why are diesel and jet fuel at the center of this? The government licence names commodity codes for diesel and jet fuel, the two products covered by the exemption. Those fuels matter because Europe consumes more diesel and jet fuel than it produces and relies on imports from other regions, according to earlier reporting cited by Channel News Asia. (channelnewsasia.com) The timing also followed a period of market strain tied to the Middle East conflict. Channel News Asia said Starmer defended the change as prices spiraled, and reported that Washington had already extended a waiver for Russian oil cargoes already at sea because the war against Iran was squeezing global supplies. (gov.uk) ### How did the United States and European officials respond? The United States extended its waiver for Russian oil cargoes already at sea for a second time on May 19, according to Channel News Asia and Euronews. Treasury Secretary Scott Bessent said the extension gave “additional flexibility” to the countries most vulnerable to energy disruption, Euronews reported. (channelnewsasia.com) The European Union said it would stay with its strategy of squeezing Russia’s war economy, according to Euronews. The same report said British ministers moved to reassure Kyiv after the announcement upset Ukrainian officials and drew criticism from European partners. ### What is Sweden asking the EU to do instead? (channelnewsasia.com) Sweden’s Foreign Minister Maria Malmer Stenergard called for a ban on maritime services for vessels leaving Russian ports with oil, gas or coal. She said restrictions on insurance, port access and financing could deliver a “massive blow” to Moscow’s revenues. (euronews.com) Stenergard said Sweden wanted the European Union, and ideally the wider Group of Seven, to adopt that measure. Caliber.Az reported that she argued a full prohibition on services for Russian tankers would increase economic pressure beyond the current price-cap system. ### What happens next? The U.K. trade licence is already in force and, according to the government notice, remains subject to periodic review. (caliber.az) British officials have also told Kyiv they are still preparing further measures against Russia’s economy, while EU governments continue debating additional sanctions steps, including maritime services restrictions. (gov.uk)