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UK Relaxes Russian Oil Sanctions Amid Iran Conflict Fuel Supply Crunch

Financial Times Companies •
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The UK government has quietly eased sanctions on Russian oil and natural gas, permitting imports of refined jet fuel and diesel processed in third countries. The move, announced Tuesday evening, aims to address supply disruptions stemming from the Iran conflict and blockade of the Strait of Hormuz. It mirrors similar actions taken by the US government this week.

Conservative leader Kemi Badenoch slammed the decision as "insane," criticizing Labour for importing Russian oil while opposing North Sea drilling licenses. The waiver follows the UK's October 2025 ban on refined fuels made from Russian crude, extending earlier restrictions dating to December 2022. The government also lifted shipping restrictions on Russian LNG from two terminals.

The policy shift reflects mounting pressure on global energy markets as crude prices have surged since the Iran war began, stoking inflation and raising borrowing costs. Officials argue the changes, while maintaining pressure on Moscow, provide necessary flexibility during the international crisis. The measures include record-keeping requirements for companies and will be reviewed periodically.