Britain eases Russia fuel ban

Britain carved out an exemption this week from a new ban on fuel made from Russian crude in third countries, allowing imports of jet fuel and diesel refined in places such as India and Turkey. The UK government’s guidance says the broader prohibition on importing third-country processed oil products made from Russian crude was introduced on May 19 and took effect on May 20. A sanctions licence issued on Tuesday exempted jet fuel and diesel from that ban, according to Politico. The move came as fuel markets were under pressure after disruption linked to the Strait of Hormuz crisis, according to India Today. ### What exactly did Britain change? The UK government said its new measure bars the import of oil products processed in a third country using Russian crude oil. The ban is set out in Regulation 46Z9F and was introduced on May 19 before taking effect the next day, according to official guidance published on GOV.UK. (gov.uk) Politico reported that Britain then issued a sanctions licence on Tuesday exempting jet fuel and diesel from that new import ban when those products were made from Russian crude but refined in India or other third countries. The report said the licence covered fuel refined outside Russia even if the underlying crude was Russian. (gov.uk) ### Why were India and Turkey central to this issue? India and Turkey have become major refining hubs for crude bought from Russia since Western sanctions tightened after Moscow’s invasion of Ukraine. Politico reported in January that Britain had imported 4 billion pounds of oil products, including jet fuel, from Indian and Turkish refineries using Russian crude, even before the new third-country processing ban was due to begin. (politico.eu) The UK’s original sanctions push had been framed as an effort to close that route. A UK government press release from October 2025 said Britain was moving against Russia’s oil revenues, including with measures aimed at oil companies and businesses involved in the trade. ### What did EU officials say about the exemption? (politico.eu) Valdis Dombrovskis, the European Commission’s economy commissioner, said the British decision “came as a surprise,” according to Politico. He said the issue had not been raised during the G7 finance ministers’ meeting in Paris on Monday and Tuesday, where UK Chancellor Rachel Reeves was present. (gov.uk) Dombrovskis said G7 ministers had instead discussed maintaining or tightening pressure on Russia, Politico reported. He also said high energy prices were already giving Russia windfall gains, making this “not the time to roll back sanctions against Russia.” ### Was Britain acting alone? The United States had already issued related waivers in March. (politico.eu) The U.S. Treasury’s Office of Foreign Assets Control said on March 5 it was issuing Russia-related General License 133 authorizing the delivery and sale to India of Russian-origin crude oil and petroleum products loaded on vessels as of that date. A week later, OFAC said it was issuing General License 134 authorizing the delivery and sale of Russian-origin crude oil and petroleum products loaded on vessels as of March 12. Those U.S. actions were described by some outlets as temporary relief for cargoes already at sea. The official OFAC notices confirm the licences were tied to cargoes loaded by specified March dates. ### What happens next? June’s G7 leaders’ meeting is the next major test of whether the group can present a common line on Russian energy restrictions. (ofac.treasury.gov) The European Commission said on April 23 that the EU had adopted a 20th package of sanctions against Russia, including stronger anti-circumvention and energy measures. Britain’s new licensing decision will now sit alongside those EU measures as officials prepare for the next round of G7 talks. (finance.ec.europa.eu)