Britain authorises imports of Russian crude-refined fuel to ease global energy pressures

Britain has moved to let imports of diesel and jet fuel refined in third countries from Russian crude oil, in a sanctions carve-out designed to ease pressure on fuel markets as wider energy disruptions continue to ripple through the global economy.

According to Reuters, the new general trade licence will allow fuel processed outside Russia from Russian-origin crude to enter the UK, provided companies keep records and meet transparency requirements. The measure takes effect on W...

ednesday, May 20, and will run indefinitely, although officials said it would be kept under review and could be changed or withdrawn.

The decision mirrors a recent step taken by the United States, which extended sanctions waivers for some purchases of Russian seaborne oil intended to help countries exposed to energy shortages, Reuters reported.

Britain’s move comes as governments across the West continue to tighten restrictions on Russia’s energy sector while trying to avoid destabilising their own fuel supplies. Since Russia’s invasion of Ukraine, sanctions have targeted Russian oil and oil products, but crude has continued to reach refineries in countries such as India and Turkey before being shipped on to international markets. That has made enforcement increasingly difficult, particularly because refined petroleum products are often not treated as Russian-origin under trade rules.

The timing reflects renewed strain in energy markets, with Reuters saying Brent crude was trading near $110 a barrel on Tuesday, May 19, amid fears of supply disruptions in West Asia after the conflict involving Iran and tensions around the Strait of Hormuz. Higher fuel costs have been feeding through to airlines and households, adding to inflation worries in Britain.

Separately, the UK has also issued a temporary licence covering the maritime transport of liquefied natural gas from Russia’s Sakhalin-2 and Yamal LNG projects, along with related services such as shipping, financing and brokering. That licence will expire on January 1 next year, according to Reuters and the government notice.

Source: Noah Wire Services