LONDON, May 20, 2026, 12:03 BST
- The UK has cleared diesel and jet fuel processed from Russian crude for import, as long as the fuel was refined outside Russia, according to a new licence.
- UK petrol is up to 158.5p a litre after disruption near the Strait of Hormuz tightened supply.
- The row comes as Prime Minister Keir Starmer deals with pressure at Prime Minister’s Questions, along with more Labour leadership talk.
UK lifts part of its Russia oil sanctions, clears non-Russian refiners to ship in diesel, jet fuel made from Russian crude Britain is now letting in shipments of diesel and jet fuel made from Russian crude, as long as the products are refined outside Russia. That’s according to a new Department for Business and Trade licence out Wednesday. The legal change moves a narrow trade carve-out onto the political stage, triggering debate on fuel prices and London’s position on Ukraine.
UK faces fuel shock as Middle East tensions hit supplies, not just sanctions. The Guardian said the move followed worries about some fuel deliveries after the de facto Strait of Hormuz blockade. RAC data showed average UK petrol at 158.5p a litre, the most since December 2022.
UK domestic supply for the two licence-named products is tight. A 2025 government security-of-supply report said British refiners covered 54.9% of road diesel demand and 28.8% of jet fuel demand for 2024, so imports have to make up most of the rest.
The licence applies to “third country” refined fuels, meaning diesel and jet fuel produced abroad using Russian crude. The permit, described as “of indefinite duration”, will get periodic reviews. Ministers have authority to change, cancel or suspend the licence. Gov
Dan Tomlinson, Treasury minister, backed the policy Wednesday and called it a “time-limited change.” He said the UK can keep “one of the strongest sanction regimes” but still make moves to protect households, freight, and business. The government’s licence text leaves leeway to reverse, but doesn’t specify when the change ends. The Guardian
Another UK licence, also issued at the same time, covers maritime transport of liquefied natural gas, or LNG, from Russia’s Sakhalin-2 and Yamal LNG terminals where contracts qualify. This licence is in effect from Wednesday and will expire on Jan. 1, 2027.
Ukraine backers didn’t change their minds. Labour’s Emily Thornberry, who chairs parliament’s foreign affairs committee, said Ukrainians felt “very let down.” Conservative leader Kemi Badenoch labeled the move “insane” and said it matched Labour’s view on North Sea oil and gas licences. The Guardian
The step looks out of place next to Britain’s latest G7 statement. G7 finance ministers on May 19 said they want to put “severe costs” on Russia and will keep looking at pressure on energy, finance, and the military-industrial base.
Britain is now more in line with the U.S. after Washington extended a waiver letting countries buy Russian seaborne oil stuck at sea. The European Commission did not criticize London’s action, but spokeswoman Paula Pinho told the Kyiv Independent the bloc still backs sanctions on Russian oil and gas.
John Foreman, associate fellow at Chatham House and former UK defence attaché in Kyiv and Moscow, described the step as “cynical but understandable.” But he added it undermines Starmer’s moral stance. Alexander Kirk, who works on sanctions at Urgewald, put it more directly: “Moscow will read this as weakness.” The Kyiv Independent
Starmer faces tricky timing. The decision was set to come up at Prime Minister’s Questions, the weekly session in the House of Commons, after Conservative MP Andrew Bowie tabled an urgent question on the sanctions move. Labour is also dealing with leadership moves from Andy Burnham and Wes Streeting, though there is no official contest yet.
Starmer faces risk whichever way it goes. If the carve-out doesn’t lower pump prices, he’ll have handed opponents a line that Britain eased up on Russia. If fuel costs drop, Moscow could see it as proof that energy leverage works.
