UK quietly eases Russian oil sanctions as fuel costs surge amid Iran war
The UK government has been accused of “very disappointing” Ukrainians after easing sanctions on Russian crude oil.
Britain had previously announced that it would block Russian oil refined in other countries in order to “further restrict the flow of funds to the Kremlin”.
But the government has now changed its stance, announcing on Wednesday that it will now allow imports of jet fuel and refined diesel from third countries due to rising fuel costs.
A new trade license allows these imports “indefinitely” and states that sanctions imposed will be reviewed periodically as fuel prices continue to rise.
As the costs of closing the Strait of Hormuz and the ongoing crisis in the Middle East escalated, ministers attempted to defend the measures as “protecting the UK’s national interests”.
However, Dame Emily Thornberry, chair of the Foreign Affairs Committee, said she did not support the government’s decision and that the Ukrainian people were against it. I was “very disappointed” by the move.
Speaking to BBC Radio 4’s Today programme, the Labor MP said: “We are talking about our allies in Ukraine who have been fighting bravely against Russia for years with our support.”
“They saw Britain as one of their most important allies and they don’t understand when we promised to stop this deficit in October and we still haven’t done it. In fact it seems to have gotten worse. People are feeling very let down.”
Conservative Party leader Kemi Badenoch described the move to waive some sanctions as “crazy”.
He shared on X: “After 18 months of ‘standing up to Putin’, the Labor government quietly issued a license allowing the import of Russian oil refined in third countries.
“Yesterday Labor MPs voted against UK oil and gas licences. Now we import from Russia instead of drilling in the North Sea. Crazy.”
U.S. Treasury Secretary Scott Bessent earlier this week extended a 30-day sanctions waiver allowing the purchase of Russian oil shipments already at sea.
“This extension will provide additional flexibility and we will work with these countries to provide specific licenses as needed,” he said in a post on X.
“This general license will help stabilize the physical crude oil market and ensure oil reaches the most energy vulnerable countries.”
This comes amid new figures showing oil prices have eclipsed the previous high set during the Iranian oil crisis.
On Tuesday, the RAC said the average price of a liter of petrol in pre-trials in England stood at 158.5p, the most expensive since December 2022.
The price had previously peaked at 158.3 pence on April 15, after the conflicts in the Middle East began on February 28.
RAC head of policy Simon Williams earlier this week described the latest increase as “bad news for motorists ahead of the bank holiday” and warned prices will become even more expensive.
He said: “RAC analysis of wholesale fuel data unfortunately shows that unless there is a dramatic and sustained fall in oil prices, which have been above $100 per barrel since the end of April, unleaded oil is likely to rise to at least 160p per liter in the coming weeks.”
It was widely reported on Thursday that Chancellor Rachel Reeves would abandon plans to increase fuel duty from September.
In the November 2025 budget, it announced that the 5p per liter fuel duty cut introduced by the Conservative government in March 2022 would be extended until the end of August 2026, with rates gradually returning to previous levels over the next five years.
The Treasury was contacted to get an opinion on the issue.
