The UK government has announced it is relaxing sanctions on oil originating from Russia that has been sent to other countries for refining. A new license will come into force tomorrow allowing this refined oil to be imported indefinitely, though Business Secretary Peter Kyle will review the arrangement periodically.
The sanctions were originally introduced in October last year as part of efforts to apply pressure on Russia over its war in Ukraine. The ban targeted Russian-origin crude oil that had been processed in third countries before being imported to the UK. However, growing concerns about fuel supply disruptions caused by the crisis in the Strait of Hormuz have forced the government to reverse course.
The move comes amid widespread concerns across Europe about energy security as the Iran-US conflict continues to disrupt oil shipments through Hormuz, one of the world's most critical maritime chokepoints. UK petrol prices have already hit 158.5 pence per litre, the highest level since the Iran crisis began, and aviation fuel costs have nearly doubled.
The decision is likely to draw criticism from Ukraine and its allies who argue that weakening Russian oil sanctions undermines the international pressure campaign against Moscow. However, the government appears to have concluded that the risk of jet fuel shortages and further price spikes for consumers outweighs the diplomatic cost of easing restrictions on Russian energy products.