UK bans imports of Russian oil refined abroad, exempts diesel and jet fuel

The UK government banned imports of oil products made from Russian oil processed in third countries but exempted its two largest imports, diesel and jet fuel, it announced May 19.

The new prohibition on Russian oil derivatives arriving via the "back door" will take effect from May 20, said a statement from the UK's Department for Business and Trade. However, general licenses were issued to allow continued imports of diesel and jet fuel, and some associated services, the government said in a separate notice.

The tougher trade restrictions represent a watered-down version of new measures announced by Westminster in October 2025, which committed to clamping down on fuel imports made from Russian oil processed abroad. The ban was intended to mirror similar restrictions from the EU from Jan. 21, interpreted as a significant policy escalation that could hit supplies from India and Turkey.

On Feb. 25, days before the US launched "Operation Epic Fury" in Iran and triggered a surge in global oil prices, UK Trade Minister Chris Bryant said that the new measures would be arriving "very soon," without providing an implementation date.

In an explanatory memorandum published May 19, the government said it estimated a GBP130 million cost to UK businesses in the first year of implementing the import ban without introducing exemptions. Between its LNG maritime services ban and refined oil products ban, the cost could hit GBP3.1 billion over a ten-year period without "mitigations," the government said.

"The refined oil ban could raise global jet fuel and diesel prices in the short term, reducing margins for firms reliant on transport, logistics or fuel-intensive inputs, with some passing costs on to consumers," the statement said.

Jet fuel and diesel prices have been among the worst-hit oil products by the conflict in the Middle East, which emerged as a major European fuel supplier after the UK and EU banned direct Russian imports in February 2023.

Platts, part of S&P Global Energy, assessed the price of jet CIF NWE cargoes at $1,359/metric ton on May 19, down from an all-time high of $1,843/mt in April, but up from a pre-war level of $831/mt. The same day, the ULSD cargo price stood at $1,232/mt, up from $763/mt on Feb. 27.

Sanctions caution

Two recent refinery closures have widened the UK's import deficit and left the country particularly exposed to recent disruptions. In 2025, the country imported roughly 200,000 barrels/day of jet fuel and diesel, of which around a third arrived from the Middle East Gulf, according to S&P Global Commodities at Sea data.

Since 2023, jet fuel and diesel are the only oil products the UK has imported from India, Russia's lead importer of seaborne crude, CAS data showed. In 2025, the UK averaged 32,000 b/d of Indian jet/kerosene imports and just 7,000 b/d of gasoil. The country has not imported clean products from Turkey, another Russian trade partner, since 2024, but received some 9,000 b/d of Turkish-origin bitumen in February.

The government said it will continue to assess the energy market and the impacts of the new restrictions and, if appropriate, issue further licenses to manage them.

The news follows a series of short-term sanctions waivers issued by the US administration, which has relaxed some of its Russian oil restrictions in an effort to tame prices.

The US Treasury announced on May 18 it would allow Russian oil on the water to continue to be purchased for another 30 days and offered to work with "energy vulnerable countries" to provide further licenses as needed.

The UK previously supported an EU proposal to enforce a full maritime services ban on Russia's crude trade, and said it was discussing imposing its own measures to cover both crude and refined products. However, such restrictions have yet to be enacted amid ongoing oil supply concerns.