Overview
- A trade licence that came into effect on Wednesday May 20 permits imports of jet fuel and diesel made from Russian‑origin crude that was refined in third countries.
- Ministers said the change is a narrowly focused, short‑term step to protect consumers and airlines from soaring prices and supply risks caused by recent Iran‑related shipping disruptions.
- Ukrainian officials, opposition politicians and campaigners have strongly criticised the move, saying the carve‑out weakens pressure on Russia and risks funding its war effort.
- Whitehall messages have clashed over the licence’s duration after the Department for Business and Trade described it as indefinite while ministers called it time‑limited, prompting an apology from a trade minister for poor handling of the announcement.
- Analysts warn the policy sets an international precedent that could erode allied sanctions coordination even if the direct financial gain to Russia from the licence is small, and markets will be watched for further price and supply effects.