UK softens ban on Russian oil imports amid supply fears

Plans to impose a ban on UK imports of diesel and jet fuel made from Russian oil in third countries have been watered down amid concerns over supplies and price rises.

The government will now "phase in" some new sanctions over the coming months due to the effective blockade of the key Strait of Hormuz waterway since the start of the US-Israel war with Iran.

The Foreign Office denied the shift in policy could be described as a "waiver" on sanctions aimed at hurting Russia's economy, but admitted extra flexibilities were required.

One expert told the BBC such changes sent a "negative signal" on the UK's support for Ukraine and added it would unlikely lead to lower fuel prices.

"This measure looks unnecessary, it's not going to bring down prices but it's also not going to attack the shortage that probably wasn't going to happen anyway," said Robin Mills, chief executive of Dubai-based energy consultancy Qamar Energy.

The original plan to ban oil products derived from Russian crude oil, such as jet fuel and diesel, entering the UK from third countries, was first announced as part of a raft of fresh sanctions by the government in October last year.

It came after the BBC revealed in 2024 that millions of barrels of fuel made from Russian oil were still being imported to the UK through a loophole in global trade rules, despite sanctions being imposed.

While some sanctions have been imposed on Wednesday, the ban on oil products made from Russian crude oil and being imported via third countries has been delayed.

The watering down of planned measures will effectively allow imports of jet fuel from India, which was previously a key supplier to UK and Europe. A lot of Russian crude oil is also refined in Turkey.

It is understood the government now plans to "phase" in the ban in the coming months. The rules will be reviewed regularly and "will allow for the full ban to be phased in without causing instability" amid the fuel supply shock stemming from the Middle East conflict.

The government said "targeted" short-term licences had been issued "within the refined oil import ban to support flexibility in UK supply and global markets".

It denied the delay amounted to a sanctions waiver, which was put in place by the US government last month and was highly criticised.

The conflict in the Middle East has effectively ended transport of oil and liquefied natural gas (LNG) as well as other essentials.

More than half of Europe's jet fuel is transported through the strait and as a result of the supply disruption, European jet fuel prices are nearly double what they were before the war started.

In late February, before the first US and Israeli airstrikes, jet fuel was trading at $831 per tonne in Europe. By early April, it had touched $1,838 before beginning to fall. It is now at $1,375.

The UK is issuing a ban on maritime transportation of Russian LNG and related services but a time-limited licence will allow this to continue until 1 January.

The UK has led international efforts to put economic pressure on Russia over the invasion of Ukraine.

Only on Tuesday the UK signed a G7 statement reaffirming its "unwavering commitment" to impose "severe costs" on Russia.

'Negative signal'

But Mills told the BBC's Today programme the UK's policy change sent a "negative signal that sanctions on Russia are potentially weaker because of the crisis in the gulf and that countries including the UK and the US will back down on sanctions because of other issues".

This week, Ryanair chief executive Michael O'Leary said the risk of a fuel shortage was "almost zero", however other airlines have cancelled flights in response to the surge in fuel costs.

Treasury minister Dan Tomlinson said the "small and specific" and "time-limited" change was being made to "protect the security of supply for really important foundational goods in our economy such as jet fuel".

While the government remained "steadfast in its commitment to supporting Ukraine", he said, it had to "make the right and sensible decisions" when it came to oil products required for the UK.

Conservative leader Kemi Badenoch also criticised the move, saying that "after 18 months of 'standing up to Putin'", the government had "quietly issued a licence allowing imports of Russian oil refined in third countries".

She pointed out that on Tuesday Labour MPs had voted against issuing new UK oil and gas licences, but now the country was "importing from Russia instead of drilling in the North Sea".

Labour chair of the foreign affairs select committee, Dame Emily Thornberry, said she opposed the government's decision, adding she had heard from people in Ukraine overnight and they were "very disappointed".

"We're talking about our allies in Ukraine who have been fighting a war bravely against Russia for years and years, with our support, and they have looked to Britain as one of their most important allies, and they don't understand," she said.

Earlier this week, the US extended a similar waiver, first introduced in March, which loosened sanctions preventing other countries buying Russian oil and petroleum already loaded on vessels at sea.

The policy has been criticised by many US and UK allies who say it helps the government of Russian President Vladimir Putin and his invasion of Ukraine, which has been ongoing since 2022.

French President Emmanuel Macron has said that the Strait of Hormuz's shutdown "in no way" justified lifting the sanctions on Russia while Ukraine's President Volodymyr Zelensky has said "every dollar paid for Russian oil is money for the war".

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