The UK government has lifted sanctions on Russian crude oil, permitting the importation of jet fuel and diesel refined in third countries amidst soaring fuel costs as a result of the closure of the Strait of Hormuz and the ongoing Middle East crisis.
The Government has relaxed sanctions on Russia n crude oil , allowing for the import of jet fuel and diesel refined in third countries amid surging costs.
A trade licence, which came into effect today, permits the imports 'indefinitely'. According to the licence, the sanctions carve-out will be periodically reviewed as fuel prices rise due to the closure of the Strait of Hormuz and the ongoing crisis in the Middle East. The Government had previously announced the UK would block Russian oil refined in other countries in a bid to 'further restrict the flow of funds to the Kremlin'.
Rising fuel costs have rippled through the global economy, with jet fuel prices surging in recent months and squeezing airlines, for which fuel can account for up to a quarter of operating expenses. Carriers worldwide have responded with fare increases, capacity cuts and warnings of weaker earnings. Higher fuel costs have also fed into broader cost-of-living pressures in Britain, which the Government is seeking to ease as it grapples with inflation and energy affordability concerns.
Tory leader Kemi Badenoch called the move to waive some of the sanctions 'insane'. Russian president Vladimir Putin attends a meeting with China's Xi Jinping in Beijing today She posted on X: 'After 18 months of 'standing up to Putin' the Labour govt quietly issued a licence allowing imports of Russian oil refined in third countries.
'Yesterday Labour MPs voted against UK oil and gas licences. We are now importing from Russia instead of drilling in the North Sea. Insane.
' US 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 nations to provide specific licenses as needed,' he said in a post on X. Read MoreBREAKING NEWS Inflation rate falls from 3.3% to 2.8% thanks to energy price cap but experts warn of trouble ahead 'This general license will help stabilise the physical crude market and ensure oil reaches the most energy-vulnerable countries.
' Critics of the US decision to extend waivers have said it allowed the Kremlin to earn more money and fund the war in Ukraine to kill innocent people. Brent crude yesterday was trading around $110 a barrel, near recent highs, reflecting concerns over disrupted flows through the strait. The average global jet fuel price was at $162.55 per barrel last week - roughly in line with the week before, according to International Air Transport Association data.
This is 22 per cent down from a peak of $209 at the start of April, but still about 65 per cent above the $99 level at the end of February when the war began. Western sanctions have sought to curb Moscow's energy revenues since its invasion of Ukraine, but Russian crude continues to flow to global markets, often via intermediaries.
Large volumes are shipped to countries such as India and Turkey, where they are refined and re-exported, complicating enforcement as refined products are not typically classified as Russian-origin under standard trade rules. Separately, Britain yesterday issued a time-limited licence covering the maritime transportation of liquefied natural gas from Russia's Sakhalin-2 and Yamal projects and related services - including shipping, financing and brokering - under Russia sanctions rules, running until January 1 next year.
Sakhalin-2, based in Russia's far east, and Yamal LNG in the Arctic, are among the country's largest gas export projects. Japan's Taiyo Oil said earlier in May that the refinery was set to receive a cargo from Russia's Sakhalin-2 project as it sought alternatives to disrupted Gulf supplies.
Meanwhile new figures showed petrol prices have eclipsed the previous high set during the Iran oil crisis. Yesterday, the RAC said the average price of a litre of petrol at UK forecourts stands at 158.5p, which is the most expensive it has been since December 2022. Following the beginning of the conflict in the Middle East on February 28, the price had previously peaked at 158.3p on April 15.
RAC head of policy Simon Williams earlier this week described the recent rise as 'bad news for drivers ahead of the bank holiday' and warned prices are set to become even more expensive.
' He said: 'RAC analysis of wholesale fuel data unfortunately indicates that unleaded is now likely to increase to at least 160p a litre in the coming weeks, unless there's a dramatic and sustained drop in the price of oil which has been above 100 US dollars a barrel since late April. ' It has been widely reported that tomorrow, Chancellor Rachel Reeves will abandon her plan to increase fuel duty from September.
She announced in her November 2025 budget that the 5p per litre fuel duty reduction – introduced by the Conservative government in March 2022 – would be extended until the end of August 2026, with rates then gradually returning to previous levels over the next five years. The Daily Mail has contacted the Treasury for comment.
Russia Crude Oil Sri Lanka Ukraine World Economy Fuel Prices Airlines Global Market Strait Of Hormuz Middle East Crisis Sandiegoplus Fuel Duty Jet Fuel Prices Worldwide Fuel Prices UK Middle East States China Xi Jinping Black Sea Russia Peter Sands
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
US reaches $275M settlement with India's Adani over alleged Iran sanctions violationsUS says Adani Group, which has close ties to Indian PM Narendra Modi, agreed to settle potential civil liability arising from 32 apparent violations of sanctions on Iran.
Read more »
Dollar retreats on report of US-Iran sanctions dealThe dollar slipped against most major currencies on Monday as oil prices fell after an Iranian news report indicated that the United States was set to waive sanctions on Iranian crude.
Read more »
Syria praises EU move to relax sanctions on state institutionsDamascus said it hopes to deepen cooperation with the European Union in support of reconstruction and Syria's political transition.
Read more »
Trump extends Russian oil sanctions waiver for most vulnerable nationsThe extension allowing for the purchasing of Russian oil comes just two days after the administration let its previous waiver expire.
Read more »