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UK Issues Licences Allowing Some Fuel From Russian‑Origin Crude

The licences are designed to stabilise supplies for consumers and airlines by permitting diesel and jet fuel refined from Russian‑origin crude in third countries.

Overview

  • The government published two licences late on May 19 that took effect on May 20 allowing imports of diesel and jet fuel refined from Russian‑origin crude if processed in a third country and a separate temporary maritime licence for LNG.
  • The trade licence is described as of indefinite duration with periodic reviews and the LNG maritime licence permits shipments from Sakhalin‑2 and Yamal until Jan. 1, 2027.
  • Ministers said the measures are a targeted, time‑limited step to protect UK fuel availability and keep jet fuel flowing after shipping disruptions linked to the Iran conflict and the effective closure of the Strait of Hormuz.
  • Ukrainian officials, opposition politicians and sanctions campaigners criticised the carve‑outs for weakening pressure on Moscow and warned the move mirrors a recent US waiver that eases enforcement of energy restrictions.
  • Analysts note the licences reopen supply routes from hubs such as India and Turkey where Russian crude is refined, which may ease short‑term prices for drivers and airlines while creating a precedent that could let Russia monetise more oil during supply shocks.