UK eases sanctions on Russian oil refined into jet fuel and diesel

The UK government has eased sanctions on Russian oil and gas in a move intended to ease supply problems during the Iran crisis.

The decision, quietly announced by the government on Tuesday evening, includes the loosening of sanctions on oil from Russia refined in third countries for jet fuel and diesel and echoes a similar move by the US.

The waiver — which Conservative leader Kemi Badenoch labelled as “insane” — begins on Wednesday and is intended to address concerns about the supply of some types of fuel caused by the blockade of the Strait of Hormuz waterway since the start of the US-Iran war.

The UK banned the import of refined fuels such as diesel and jet fuel made from Russian crude oil in October 2025, extending restrictions that had barred the direct import of oil and fuels produced in Russia since December 2022.  

“After 18 months of “standing up to Putin” the Labour government quietly issued a licence allowing imports of Russian oil refined in third countries,” Badenoch said on X on Wednesday.

“Yesterday Labour MPs voted AGAINST UK oil and gas licences. We are now importing from Russia instead of drilling in the North Sea. Insane.” 

The move follows a similar step by the US, which on Monday extended a sanctions waiver allowing purchases of Russian seaborne oil to support energy-vulnerable countries.

US Treasury secretary Scott Bessent said on Monday that his department would issue a new 30-day licence “to provide the most vulnerable nations with the ability to temporarily access Russian oil currently stranded at sea”.

The move is the second extension of a waiver introduced by the Trump administration in March that allowed Russian oil subjected to sanctions to flow to global markets as part of Washington’s efforts to stem a surge in the price of oil. 

The UK licence issued on Tuesday grants exemptions where the fuels are processed in third countries but includes conditions such as record-keeping requirements for companies.

The new rules take effect on Wednesday and will be of indefinite duration, although they will be reviewed periodically and can be amended or revoked, the government said.