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The UK government has announced a relaxation of certain sanctions targeting Russian oil products, specifically those processed into diesel and jet fuel in third countries, in response to rising prices. This change took effect on Wednesday and addresses growing supply concerns linked to the effective blockage of the vital Strait of Hormuz, a consequence of the ongoing conflict involving the US, Israel, and Iran. Alongside this, some restrictions on the transportation of Russian liquefied natural gas (LNG) have also been eased.
Despite the overall sanctions regime becoming more stringent, officials have acknowledged the need for increased flexibility to manage supply issues. The UK’s move mirrors a recent decision by the United States, which faced significant criticism for its similar approach. Since the outbreak of the war, jet fuel costs in Europe more than doubled, though prices have recently moderated somewhat, remaining elevated with UK fuel prices still climbing. These high fuel costs have led numerous airlines operating domestically and internationally to cancel flights and raise ticket prices.
For several years, the UK has played a leading role in coordinating international economic pressure on Russia over its invasion of Ukraine. Just days before this announcement, the UK reaffirmed its “unwavering commitment” through a G7 statement to impose “severe costs” on Russia. Since October of the previous year, the UK had banned imports of diesel and jet fuel refined from Russian crude sourced from third countries. The new relaxation will primarily permit the import of jet fuel refined in countries like India—an important supplier to the UK and European markets—as well as Russia-crude refined in places such as Turkey.
The updated regulations pertaining to sanctioned processed oil products have been established with no fixed end date but will be subject to regular review and potential revision or cancellation. Additionally, the UK introduced a time-limited license covering maritime transport of LNG and related services under Russia sanction rules, valid until January 1. Earlier this week, the US extended its own waiver that allows third countries to buy Russian oil loaded onto ships at sea, a measure originally introduced in March to promote “stability in global energy markets,” according to US Treasury Secretary Scott Bessent. Although the policy has drawn criticism from allies who argue it supports Russia’s war effort, UK Foreign Secretary Yvette Cooper described the US action as a “specific, targeted issue” rather than outright criticism.
A UK government spokesperson emphasized the introduction of numerous new prohibitions under the Russia sanctions framework, highlighting further import and export restrictions on Russian refined oil products and uranium supply to third countries. The sanctions now also include a ban on maritime services related to Russian LNG, aimed at disrupting Russia’s access to the UK’s leading shipping and insurance sectors, thereby hampering its ability to transport LNG. The UK remains committed to bolstering sanctions to diminish Russia’s capacity to continue its military aggression in Ukraine while striving to safeguard critical supply chains and maintain market stability
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