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The United Kingdom has eased some sanctions on Russian oil and liquefied natural gas to help cope with rising prices as conflict in the Middle East disrupts global supplies.
A trade license that came into effect on Wednesday allows the import of jet fuel and refined oil from Russian crude oil to third countries, while another lifts restrictions on the transport of LNG from two Russian terminals.
British Prime Minister Keir Starmer denied that the decision to extend the restrictions, first announced in October last year, would reduce pressure on Moscow and promised to continue working with allies on further sanctions.
The Prime Minister told the House of Commons that the "short-term" measures would help protect consumers from the impact of the crisis and were part of a "phase" of tougher new sanctions targeting the Kremlin.
"This is not a matter of lifting existing sanctions by any means and we will continue to work with our allies on further sanctions packages ," he told parliament.
Chris Bryant, the business minister, told MPs that the upcoming sanctions would be important in “increasing pressure on the Russian regime”, but the government was implementing them “gradually” due to energy market volatility caused by the conflict in the Middle East.
Bryant added that the UK's decision was consistent with the approach followed by Canada and Australia and would be reviewed by the government "as soon as possible."
The United Kingdom has for years led international efforts to put economic pressure on Moscow over its war in Ukraine. On Tuesday, it signed a G7 statement reaffirming its “unwavering commitment” to imposing “heavy costs” on Russia. It had previously announced it would block Russian oil refined in other countries to “further restrict the flow of funds to the Kremlin.”
Opposition politicians condemned the move to delay sanctions. Conservative leader Kemi Badenoch posted on X: “After 18 months of ‘opposing Putin’, the Labour government has quietly issued a licence allowing imports of refined Russian oil to third countries. Yesterday, Labour MPs voted against UK oil and gas licences. Now we are importing from Russia instead of drilling in the North Sea. Madness.”
The decision follows similar moves by the US, as Iran's blockade of the Strait of Hormuz continues to disrupt global energy supplies, deepening concerns that the world could soon be left without backup energy supplies.
This week, US Treasury Secretary Scott Bessent extended a 30-day exemption from sanctions that allows the purchase of Russian oil shipments that are already at sea, saying in a post on X that the extension will provide additional flexibility and we will work with these countries to provide specific licenses as needed.
On Tuesday, the RAC said the average price of a litre of petrol at UK airports was 158.5p, the most expensive it had been since December 2022. Several major airlines have been forced to cancel flights and raise prices due to the rising cost of jet fuel since the start of the war in the Middle East, which usually supplied around a third of Europe's jet fuel before the crisis.
On Wednesday, Starmer confirmed a widely expected extension of the temporary 5p cut in fuel duty. Announcing the freeze until the end of the year and a relief on vehicle tax for the transport industry, the prime minister told the House of Commons that they were a necessary response to cost-of-living pressures.
The easing of sanctions will allow jet fuel imports from India, which was previously a major supplier to the UK and Europe. Russian crude is also refined in large quantities in Turkey.
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