UK eases jet fuel, diesel sanctions

Britain on May 19 published a general trade licence exempting diesel and jet fuel from a new ban on imports of oil products refined in third countries from Russian crude, creating an immediate split with Brussels over sanctions coordination. The licence, issued by the Department for Business and Trade, covers diesel under HS codes 2710 19 42 and 2710 19 44 and jet fuel under HS code 2710 19 21. The underlying ban had been introduced the same day and took effect on May 20 under the Russia (Sanctions) (EU Exit) (Amendment) Regulations 2026. EU Economy Commissioner Valdis Dombrovskis said the carve-out was not raised at this week’s G7 finance ministers’ meeting in Paris and “came as a surprise.” ### Which fuels did Britain exempt, and from what rule? The UK government said the new prohibition targets oil products processed in a third country from Russian crude, a route London had described as a “back door” for Russian oil entering Britain. Guidance published on May 19 said the measure was meant to align with the European Union and reduce Kremlin revenues. (gov.uk) The same day, the government also issued General Trade Licence GBSAN0004, which says the prohibitions in regulations 46Z9F, 46Z9G, 46Z9H and 46Z9I do not apply if the products are diesel or jet fuel within the listed commodity codes. The licence also authorizes related services tied to those imports and includes a record-keeping requirement. (gov.uk) ### Why did London say it made the change? Prime Minister Keir Starmer told lawmakers on May 21 that Britain had issued “two targeted short-term licenses” to phase in the sanctions and protect UK consumers, according to Politico. Trade Minister Chris Bryant said the move was prompted in part by instability in energy markets linked to the Middle East conflict. (gov.uk) Politico reported that the exemption followed fuel-market disruption tied to the Strait of Hormuz crisis. The British government’s published licence does not itself spell out that rationale, but ministers publicly framed the measure as a temporary energy-security step while the new sanctions package was being phased in. ### Why did Brussels object? (politico.eu) Valdis Dombrovskis said on May 21 that Britain had not flagged the exemption during the G7 finance ministers’ meeting held in Paris on May 18 and 19, where Chancellor Rachel Reeves attended. “Now is not the time to roll back sanctions against Russia,” he said, according to Politico. The European Union had already implemented a similar ban in January, Politico reported. (politico.eu) A spokesperson for Starmer said Britain had worked “closely with international partners including the EU to finalize details” of the sanctions package, while adding that the consultation covered the overall package. ### How did Ukraine respond? (politico.eu) A Ukrainian politician told The Independent that loosening the sanctions put a “question mark” over Britain’s friendship with Ukraine. That criticism came as Kyiv continued to press allies to keep tightening restrictions on Russian revenue streams. The G7’s formal line did not change this week. (politico.eu) In a communiqué issued after the Paris meeting on May 19, G7 finance ministers and central bank governors said they remained committed to measures that constrain Russia’s ability to finance its war, a position also reflected in reporting by Ukrinform citing French officials. (independent.co.uk) ### What happens next? The UK regulations are already in force, with the amended Russia sanctions regime effective from May 20 and the diesel-and-jet-fuel licence published on May 19. Any further change to the exemption would have to come through a revised licence or additional government guidance. The next test will be whether London keeps the carve-out temporary. (consilium.europa.eu) For now, the published licence remains on the government’s sanctions guidance pages, while EU and G7 officials continue to point back to the Paris discussions on May 18 and 19 as the latest coordinated position on Russia sanctions. (gov.uk 1) (gov.uk 2)