On Wednesday, the UK is easing its sanctions rules in London regarding Russian-origin kerosene, diesel, and LNG, as the war in Ukraine strains oil supplies and drives up energy prices. The government is authorizing fuel imports provided that refineries in third countries have processed Russian crude oil. At the same time, it is creating temporary exemptions for liquefied natural gas sourced from specific Russian facilities. Consequently, the critical risk factor lies in the indirect financing of Russian crude oil exports. The aviation sector, the transport industry, energy traders, and consumers are all affected. (tagesspiegel: 20.05.26)
London Prioritizes Security of Supply Over Sanctions Severity
Following the Russian invasion of Ukraine, Great Britain imposed tough energy and financial sanctions. This approach was intended to limit Moscow’s revenues from commodities. Now, however, London is shifting its focus toward a stable supply.
The new exemption does not apply to direct fuel deliveries from Russia. The decisive factor remains processing in a third country. Consequently, British companies are permitted to purchase products—for instance, if Indian refineries have processed Russian crude oil into diesel or aviation fuel.
Kerosene and Diesel from Third Countries Permitted Once Again
Kerosene is of paramount importance to the aviation sector. Rising prices quickly impact airlines, airports, and passengers alike. As such, this relaxation of the rules could help mitigate cost risks in the short term.
Diesel, too, remains strategically vital for the United Kingdom. Haulage firms, the agricultural sector, and supply chains all rely on predictable pricing. At the same time, however, this measure carries a political cost, as it allows Russia to continue selling its crude oil.
LNG Exemption Creates New Vulnerabilities
The government is also introducing limited-time provisions regarding the import of LNG. This rule applies to liquefied natural gas sourced from specific Russian facilities. With the gas market remaining under strain, this move provides London with increased flexibility.
Treasury Minister Dan Tomlinson justified the decision as necessary to “protect the national interests of the United Kingdom.” However, this phrasing underscores the inherent conflict of objectives: energy security is now being prioritized over the established logic of the sanctions regime.
Criticism Mounts Over Indirect Dealings with Russia
The opposition has sharply criticized this shift in policy. Tory leader Kemi Badenoch stated that, after months of tough rhetoric, the Labour government has tacitly granted a license for Russian oil in third countries. At the same time, she has cast this move as a symbol of a weaker policy toward Russia.
This development is also sparking controversy at the G7 level. EU Commissioner for Economy Valdis Dombrovskis warned against easing pressure on Moscow. Consequently, while the UK is mitigating short-term supply risks, it is accepting the attendant political and strategic costs.