UPDATE 4-UK defers import ban on diesel, jet fuel derived from Russian crude

Britain said on ‌Wednesday ​it will continue to allow imports of diesel and jet fuel refined from Russian crude in third countries, deferring a ban first announced in October, to help the country cope with supply issues caused by the Iran war.

The decision was criticised by lawmakers in Britain and Ukraine who accused the government of easing pressure on Russia and backtracking on promises to stop Moscow profiting from oil production ‌to fund its war with Ukraine. Prime Minister Keir Starmer said the measures were part of a broader sanctions package that increased pressure on Moscow and that allowing imports to continue was a way of phasing in the ban.

"This is not a question of lifting existing sanctions in any way whatsoever," Starmer told Britain's parliament, adding that the government was not relieving pressure on Moscow. Trade department minister Chris Bryant said the measures were being taken "in the light of the situation in the Middle East" and that he intended to suspend them - effectively implementing ‌the ban - as soon as possible.

Under the carve-out, which takes effect on Wednesday, Britain has allowed imports of jet fuel and diesel refined in third countries such as India and Turkey that may be derived from Russian oil, opening up additional ‌supplies as prices rise. Airlines in April warned about potential summer shortages of jet fuel supplies, but recently struck a more bullish tone on availability, although carriers worldwide have hiked fares and some have cut flights. BRITISH LAWMAKERS CHALLENGE MOVE

Conservative opposition leader Kemi Badenoch told Starmer in parliament he had chosen to "buy dirty Russian oil" and that "that money will be used to fund the killing of Ukrainian soldiers", while senior Labour lawmaker Emily Thornberry said Ukraine had been "very let down". Ukrainian opposition lawmaker Oleksiy Honcharenko told Times Radio that the British decision was "deeply disappointing" and raised a "question mark" over the country's support.

An adviser for Volodymyr Zelenskiy said the Ukrainian president's office ⁠had "very active communication" ​with the British government, which was clarifying details. Brent crude was trading at ⁠around $109 a barrel on Wednesday, 50% higher than before the Iran war, reflecting disrupted flows through the Strait of Hormuz. The United States on Monday extended a sanctions waiver allowing purchases of Russian seaborne oil to support energy-vulnerable countries hit by supply disruptions. The European Commission criticised Washington's extension of the waiver, the second of a ⁠measure first introduced in March, warning it risked boosting Russia's revenues. "From the EU point of view, we do not think that this is the time to ease pressure on Russia," EU economy commissioner Valdis Dombrovskis said on Tuesday.

THOUSANDS OF SANCTIONS REMAIN Since Russia launched a full-scale invasion of Ukraine ​in 2022, Britain has sanctioned more than 3,200 individuals, businesses and ships to try to disrupt its actions and aid Kyiv. In October, the British government said it had planned to ban imports of oil products such as diesel and ⁠jet fuel refined from Russian crude in third countries.

At the time, foreign minister Yvette Cooper described the measures as a "huge blow" to Russian President Vladimir Putin's war machine, while finance minister Rachel Reeves said that Russian oil was "off the market". On Tuesday, Britain also joined a G7 statement reaffirming an "unwavering commitment" to impose "severe costs" on Russia. The ⁠broader ​package of sanctions includes restrictions on services linked to Russian energy trade and a ban on uranium imports and related services.

BRITAIN'S REFINING CAPACITY GAP Britain has four active refineries, down from nine in 2000, after the recent closure of the Lindsey refinery, and a combined capacity of around 1 million barrels per day. However, its total product demand in March stood at 1.35 million barrels per day according to the latest IEA report, 61% of which is for diesel and jet fuel, which Britain does not produce enough of.

In ⁠2025, Britain imported 483,000 bpd of middle distillates, according to data from Kpler, with imports from India, Kuwait, Saudi Arabia and the UAE accounting for 35% of this. Junior treasury minister Dan Tomlinson also defended the change as a "sensible decision" to help ⁠ensure the security of supply and help industry, airlines and households.

Britain continued ⁠to support Ukraine by providing billions of pounds of military equipment and through the multiple sanctions that remain, Tomlinson told the BBC. Separately, Britain on Tuesday issued a licence until January to cover the maritime transportation of liquefied natural gas from the Sakhalin-2 and Yamal projects and related services, including shipping, financing and brokering.

Sakhalin-2, in the Far East, and Yamal LNG in the Arctic, are among Russia's ‌largest gas export projects.

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