UK waters down new Russian oil sanctions as fuel prices rise

The UK government has softened its planned sanctions banning imports of diesel and jet fuel derived from Russian crude oil through third countries, citing concerns over fuel supply stability and rising prices. Instead of an immediate ban, the government will phase in restrictions gradually over the coming months. This decision follows disruptions caused by the ongoing conflict in the Middle East, particularly the effective blockade of the Strait of Hormuz, a vital route for oil and liquefied natural gas shipments. Originally, the UK intended to close a loophole allowing imports of Russian oil products refined in countries like India and Turkey, which had continued despite earlier sanctions. Research from the Centre for Research on Energy and Clean Air estimated that the UK imported approximately £1.8 billion worth of such products since December 2022. The revised approach permits continued imports of jet fuel from these third countries temporarily, with the government issuing targeted short-term licenses to maintain supply flexibility amid global market volatility. The Foreign Office emphasized that the phased implementation does not constitute a waiver on sanctions aimed at weakening Russia’s economy, but acknowledged the need for flexibility due to the current geopolitical and supply chain challenges. The conflict in the Middle East, particularly the US-Israel war with Iran, has severely disrupted energy transport through the Strait of Hormuz, pushing European jet fuel prices to nearly double pre-war levels. This has heightened concerns over fuel availability and affordability across the UK and Europe. Ukraine’s sanctions commissioner expressed understanding of the UK’s rationale but criticized the temporary exemptions, warning they could generate additional revenue for Russia’s war efforts. The UK government plans to regularly review the phased ban to ensure it can be fully implemented without causing further instability in fuel markets. The move reflects the complex balance between maintaining pressure on Russia and managing the immediate economic and energy security risks facing the UK and its allies.