UK delays Russian jet fuel ban

Britain issued a sanctions licence on May 20 exempting jet fuel and diesel from a new import ban on products made from Russian crude and refined in third countries, drawing criticism from European Union officials who said they were not warned in advance. The carve-out affects fuel refined in countries such as India and came days after Britain joined a Group of Seven statement pledging to impose “severe costs” on Russia over its war in Ukraine. Politico reported that EU Economy Commissioner Valdis Dombrovskis criticised London’s handling of the decision, while Euronews reported that trade minister Chris Bryant later apologised over the licences. The British move added to questions about how far Western governments are willing to tighten energy sanctions as fuel markets come under pressure. Euronews reported that U.S. waivers on some Russian oil cargoes had already been extended, and British and other media said the U.K. decision was tied to supply concerns and rising prices linked to conflict in the Middle East. (politico.eu) ### Which fuels did Britain exempt, and from what ban? The May 20 licence exempted jet fuel and diesel from a planned British ban on importing oil products made from Russian crude but processed in third countries, according to Politico. That matters because Britain had already banned direct imports of Russian oil, and the newer measure was designed to close a route that allowed Russian crude to be refined elsewhere and then sold into the U.K. market. (euronews.com) India has been one of the countries central to that trade route, because refiners there buy Russian crude and export finished products including diesel and aviation fuel. Politico said the U.K. licence carved out those fuels even as the broader restriction was due to take effect. ### Why did Brussels say it was caught off guard? (politico.eu) Valdis Dombrovskis said the British decision came as a surprise and had not been raised with fellow G7 partners beforehand, according to Politico. The report said EU officials were particularly frustrated because the change landed just after allies had publicly reaffirmed a common line on maintaining pressure on Moscow. (politico.eu) Euronews reported that Bryant apologised over the sanctions licences and told counterparts they would be revised “as soon as possible.” The same report said Brussels was continuing to test support among G7 allies for tougher maritime restrictions on Russian oil shipments. (politico.eu) ### Why did London make the change now? British media reports said the licence was introduced as governments weighed the risk of tighter fuel supplies and higher prices. The Guardian said the measures were presented as short-term steps covering jet fuel, diesel and some liquefied natural gas shipping, while other reports linked the change to disruption around the Strait of Hormuz and broader Middle East conflict. (euronews.com) The G7 finance ministers’ communiqué issued on May 19 used tougher language, saying members had an “unwavering commitment” to continue imposing “severe costs” on Russia. Britain signed that statement one day before issuing the licence. ### Does this change Britain’s wider Russia sanctions stance? Britain has continued to support broader sanctions on Russia, and the EU adopted its 20th sanctions package on April 23. (theguardian.com) The European Commission said that package included stronger anti-circumvention measures and new energy restrictions. (g7.utoronto.ca) What changed in London was the timing and scope of one energy measure. Politico and Euronews both reported that EU officials viewed the British carve-out as a setback for coordination rather than a wholesale lifting of U.K. sanctions. ### What happens next? Chris Bryant said the British licences would be revised “as soon as possible,” according to Euronews. (finance.ec.europa.eu) EU officials, meanwhile, are discussing further steps with G7 partners, including possible maritime-service restrictions tied to Russian oil, as governments prepare for the next round of allied sanctions talks. (euronews.com) (politico.eu)