UK exempts jet fuel and third-country-refined diesel from Russian oil-products ban

Britain has carved out an exception to its new ban on oil products made from Russian crude, allowing imports of jet fuel and diesel when they are refined in third countries. The change was set out in a General Trade Licence published by the Department for Business and Trade on May 19, alongside updated sanctions guidance on third-country processed oil products. The licence permits imports of diesel and jet fuel processed outside Russia from Russian crude and also allows related services tied to those imports. The British government framed the move as an energy-security step after disruption to fuel flows through the Strait of Hormuz. The practical effect is narrow but important. Britain is not reopening direct imports of Russian crude. It is allowing certain refined products to enter if the refining happened in a third country, which the guidance defines as any country other than the United Kingdom, the Isle of Man or Russia. Government guidance says the products covered are diesel under HS codes 2710 19 42 and 2710 19 44, and jet fuel under HS code 2710 19 21. (gov.uk) ### Which fuels did Britain actually exempt? The May 19 licence covers only two categories: diesel and jet fuel. Those products had been caught by Britain’s broader prohibition on importing oil products under HS code 2710 if they were processed in a third country from Russian-origin crude oil under HS code 2709. The new licence creates an exception for those specific fuels, rather than a blanket rollback of all oil-product restrictions. (gov.uk) India has become central to the debate because officials and media reports cited refiners there as an example of the third-country route now being allowed. Politico reported that the exemption applied to products refined in India or other third countries, while other reports also referred to Turkey. ### Why did London say it made the change now? (gov.uk) The British government linked the move to supply stress after the Strait of Hormuz shock. Reports on May 19 and May 20 said ministers were trying to avoid shortages of diesel and jet fuel as conflict-related disruption tightened global oil and fuel markets. Bloomberg described the step as aimed at preventing shortages, while the government’s own documents were published the same day as the policy took effect. (politico.eu) The timing mattered because the underlying ban itself was new. Politico reported that the U.K. issued the sanctions licence on Tuesday, exempting jet fuel and diesel from the new import ban just as the broader restriction was coming into force. ### Why are EU officials and Ukraine objecting? Valdis Dombrovskis, the European commissioner for economy, said the British decision “came as a surprise.” Politico reported that he criticized London for not raising the plan during the G7 finance ministers’ meeting in Paris earlier in the week. (bloomberg.com) That put the British carve-out at odds with the public line of coordination among allies on sanctions enforcement. (politico.eu) A Ukrainian lawmaker delivered a sharper response. The Independent reported that a Ukrainian MP said easing the sanctions puts a “question mark” over Britain’s friendship with Ukraine. That criticism focused on the fact that Russian crude can still generate revenue if it is processed elsewhere and then sold into major Western markets. (politico.eu) ### Does this mean the G7 is easing pressure on Russia? G7 finance ministers said this week they would maintain sanctions pressure on Russia. Ukrinform, citing French Finance Minister Eric Lombard, reported that the ministers reaffirmed support for Ukraine and agreed to keep pressure on Russia to stop it generating revenue for the war. (independent.co.uk) That leaves Britain’s move as a national carve-out inside a broader sanctions framework that remains formally in place. The next public test will come as governments publish further guidance and as G7 leaders meet again, with European and Ukrainian officials likely to keep pressing London over how the exemption is used in practice. (politico.eu) (ukrinform.net)