Full Breakdown
UK Relaxes Sanctions on Russian Diesel, Jet Fuel and LNG Amid Middle-East Energy Shock
5/20/2026, 11:44:50 PM
Policy Shift: New Licences for Russian-Origin Fuels
On 19 May 2026 Britain issued a general trade licence that permits the import of diesel and jet fuel refined abroad from Russian crude. A separate licence, valid until 1 January 2027, authorises the maritime transport of Russian LNG from Sakhalin-2 and Yamal. Both take effect on 20 May and are indefinite, subject to periodic review.
Context: Sanctions, Iran Conflict and Fuel Prices
Since Russia’s 2022 invasion of Ukraine, the UK banned direct Russian oil and refined products. The US-Israeli war on Iran in early 2026 shut the Strait of Hormuz, a major oil artery, pushing Brent crude to roughly $110 / bbl and driving UK jet-fuel and diesel prices to multi-year peaks. The licences aim to ease the supply squeeze.
Key Figures
Prime Minister Keir Starmer, Treasury minister Dan Tomlinson, Chatham House fellow John Foreman, Conservative leader Kemi Badenoch, Labour MP Emily Thornberry, US Treasury Secretary Scott Bessent, President Emmanuel Macron and President Volodymyr Zelensky are referenced.
Data Snapshot
Brent crude hovered near $110 / bbl on 19 May. The RAC reported an average UK petrol price of 158.5 pence per litre, the highest since December 2022. US officials estimate the earlier waiver gave Russia about $150 million daily, over $4 billion total.
Implications
The licences aim to stabilise airline fuel costs and ease household energy-price pressure, but critics warn they could boost Russian revenue and erode the sanctions pressure supporting Ukraine’s defence.
Official Statements
A UK government spokesperson said, “We are committed to strengthening our sanctions on Russia to degrade its ability to wage war in Ukraine, whilst protecting critical supply chains and maintaining market stability.” Treasury minister Dan Tomlinson added the move “protects the security of supply for essential goods such as jet fuel.” G7 finance ministers reaffirmed their “unwavering commitment to continue to impose severe costs on Russia.”
Opposition & Criticism
John Foreman called the licences “cynical but understandable” and said they “undercut the moral tone of the coalition of the willing.” Conservative leader Kemi Badenoch called the move “insane,” while Labour MP Emily Thornberry warned that “Ukrainians would feel very let down.” Energy analyst Robin Mills said the decision “sends a negative signal that sanctions on Russia are weaker because of the Gulf crisis.”
Verbatim Quotes
- “cynical but understandable.” — John Foreman, Associate Fellow, Chatham House
- “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.” — Kemi Badenoch, Conservative Party Leader
- “feel very let down” — Emily Thornberry, Chair, Foreign Affairs Select Committee
- “every dollar paid for Russian oil is money for the war” — Volodymyr Zelensky, President of Ukraine
Outlook
The licences will be reviewed periodically; the LNG licence ends on 1 January 2027. Future policy will depend on the Iran-related oil shock and pressure from Ukraine and G7 partners to keep sanctions tight.
