UK eases Russian oil sanctions

Britain carved out an exemption this week for jet fuel and diesel made from Russian crude but refined in countries such as India and Turkey, softening a new sanctions regime as ministers cited pressure on fuel supplies and prices. The licence was issued on Tuesday, May 19, and the wider import prohibition on third-country refined oil products from Russian-origin crude took effect on Wednesday, May 20, according to U.K. government guidance. EU officials said they were not warned during G7 finance meetings in Paris earlier this week, and Ukrainian officials were angered by the move, according to European media reports. Trade Minister Chris Bryant later apologized for what Euronews described as the “clumsy” rollout and said the licences would be revised “as soon as possible.” ### Which fuels did Britain exempt? The Department for Business and Trade published a general trade licence on May 19 allowing imports into the U.K. of diesel and jet fuel processed in third countries from Russian crude oil. The licence covers diesel under specified customs codes and jet fuel under a separate code, and also permits related services tied to those imports. (gov.uk) U.K. statutory guidance updated on May 20 says the new prohibition in Regulation 46Z9F applies to relevant oil products processed in third countries from Russian-origin crude oil. Separate government guidance says the ban itself was introduced on May 19 and came into effect on May 20. ### Why did London make the change now? Prime Minister Keir Starmer told lawmakers on Wednesday that Britain had issued “two targeted short-term licenses” to phase in the new sanctions and protect U.K. consumers, Politico reported. (gov.uk) Trade Minister Chris Bryant said the move was prompted “partly” by instability in energy markets caused by the Middle East conflict. (gov.uk) Al Jazeera reported the licence took effect on Wednesday and was of “indefinite duration,” subject to periodic review, as the Iran war and the prolonged closure of the Strait of Hormuz pushed up fuel prices and tightened supplies. The same report said Britain also issued a temporary licence easing restrictions on liquefied natural gas from certain Russian plants. (politico.eu) ### Why did Brussels object? Valdis Dombrovskis, the EU economy commissioner, said on Thursday that Britain’s decision “came as a surprise” because it was not flagged during the G7 finance ministers’ meeting in Paris on Monday and Tuesday. He said the allies had instead been discussing why “now is not the time to roll back sanctions against Russia” as Moscow benefits from higher energy prices linked to the war in Iran. (aljazeera.com) The EU implemented a similar ban in January, Politico reported. Dombrovskis said it was important to sustain or strengthen sanctions in the current situation and that Brussels would continue to press that case with partners including Britain. ### How big is the exemption in practice? Politico cited figures from the Centre for Research on Energy and Clean Air showing jet fuel and diesel account for 99% of U.K. imports from refineries processing Russian crude. (politico.eu) On that basis, the exemption covers nearly all of the trade the new measure was designed to stop. Al Jazeera said the waiver allows Britain to keep importing Russian crude refined in third countries such as India and Turkey. (politico.eu) Opposition leader Kemi Badenoch said on X that the Labour government had issued a licence allowing such imports after 18 months of saying it was standing up to President Vladimir Putin. ### Where does the United States fit into this dispute? (politico.eu) The United States extended a waiver this week for Russian oil cargoes already at sea, Al Jazeera reported, as the war against Iran squeezed global oil supplies. Euronews said Washington had prolonged that waiver for the third time this year, describing it as extra flexibility for countries vulnerable to energy shocks. (aljazeera.com) Euronews reported that Bryant apologized for the handling of the British decision and promised changes to the licences “as soon as possible.” For now, the U.K. government’s published licence and guidance remain in force, with the next formal changes expected to appear in updated notices from the Department for Business and Trade and related sanctions guidance on GOV.UK. (euronews.com) (aljazeera.com)