UK eases sanctions on Russian-refined fuel imports amid Hormuz supply disruption

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UK eases Russian fuel import rules

Highlights

The UK government eased sanctions from Wednesday to allow imports of Russian-refined jet fuel and diesel from third countries, addressing Hormuz-related supply shortages.
The licence is indefinite but subject to periodic review, includes record-keeping conditions, and reverses strict import bans expanded in October 2025.
The UK decision mirrors a U.S. move granting a 30-day waiver for sanctioned Russian oil, aiming to stabilize markets amid the U.S.-Iran war supply disruption.

Licence change targets fuel shortages

As reported by Financial Times, the UK government quietly announced on Tuesday evening that it is easing sanctions on Russian oil and gas to help address supply problems during the Iran crisis. The licence covers jet fuel and diesel made from Russian crude when those fuels are refined in third countries, and it starts on Wednesday.

The waiver is designed to respond to concerns over supplies of some fuel types after the blockade of the Strait of Hormuz since the start of the U.S.-Iran war. The government says the exemptions are subject to conditions, including record-keeping requirements for companies, and that the rules are of indefinite duration, although they will be reviewed periodically and can be amended or revoked.

The UK had banned imports of refined fuels such as diesel and jet fuel made from Russian crude in October 2025. That measure expanded earlier restrictions that had already barred direct imports of oil and fuels produced in Russia since December 2022.

Political reaction and wider market context

Conservative leader Kemi Badenoch criticises the decision, calling it "insane" in a post on X on Wednesday. She says the Labour government is allowing imports of Russian oil refined in third countries after having opposed new UK oil and gas licences, arguing that Britain is importing fuel instead of increasing North Sea drilling.

The UK move mirrors action in the U.S., where Treasury Secretary Scott Bessent says on Monday that his department will issue a new 30-day licence to let vulnerable countries temporarily access Russian oil stranded at sea. Washington's step is the second extension of a waiver introduced in March by the Trump administration, as part of efforts to contain a rise in oil prices and keep sanctioned Russian oil flowing to global markets.

Our earlier article on the UK’s new general trade licence for Russian-origin crude refined abroad explained how Britain created a narrow sanctions carve-out for diesel and jet fuel made in third countries, subject to compliance and record-keeping rules. We also noted that the authorisation takes effect on Wednesday, is open-ended but reviewable, and was paired with a separate time-limited licence covering maritime transportation of LNG and related services.

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