UK to end Russian sanctions waiver for fuel made in third countries from 2027

The UK will ban imports of diesel and jet fuel made from Russian oil from 2027 by ending a temporary sanctions waiver covering both products, its government said late June 12.

On May 20, the UK enforced a ban on imported fuel derived from Russian crude, but excluded jet fuel and diesel, the main products the legislation was expected to cover.

The general license did not originally include a fixed expiry date, and was issued on the grounds that it would prevent UK businesses from facing further energy price spikes.

The announcement triggered backlash from other parties and lobby groups for watering down a commitment to clamp down on Russian oil arriving through the "back door" and allowing the Kremlin to profit from windfall profits triggered by the Middle East conflict.

The new government statement committed to lift the exemption for diesel and jet fuel by Jan. 1, 2027 at the latest, and reiterated plans to review the general license on a fortnightly basis.

"The end date is a clear signal that we continue to ratchet up maximum pressure on Russia," said UK Trade Minister Chris Bryant, who committed to lift the license "as soon as practicable" and to tighten sanctions in a "phased and responsible way".

The UK bought around 1.6 million metric tons of jet fuel and diesel from India, one of Russia's top crude buyers, in 2025, accounting for around 7% of its annual imports, according to government data. The two fuel types made up 99% of the UK's oil imports from India, meaning trade flows remain largely unaffected with the general license in place.

Turkey, another Russian oil consumer, shipped 564,000 mt of "primary oils" to the UK in 2025, but no LPG, gasoline, jet fuel or diesel, the data showed.

Last year, the US was the UK's largest jet and diesel supplier, shipping 19% of all supplies, followed by Kuwait with an 18% share. Saudi Arabia and the UAE also contributed a combined 16%, leaving the country significantly exposed to recent disruptions linked to the Middle East conflict.

Since the beginning of the US and Israeli war against Iran, the cost of ultra-low sulfur diesel at UK retail stations has risen almost 30% from GBP 1.41/liter to GBP 181.79/l, its highest since December 2022, according to government figures.

EU clampdown

Efforts to commit to tougher sanctions against Russia mirror recent action by EU countries. On June 9, the bloc unveiled its proposal for its 21st sanctions package against Moscow, followed up by a separate set of listings on June 15.

New EU targets include two individuals and 24 entities accused of supporting Russia's "shadow fleet," a network of tankers supporting oil shipments above the bloc's price cap, as well as Lukoil-Western Siberia. Other listings covered energy players in Turkey, the UAE, Azerbaijan and Hong Kong, the statement said.

On June 14, UK forces also intercepted a Russian shadow tanker in the English Channel for the first time, and called the operation an escalation in efforts to police illicit energy trade flows.

"The recent increase in energy prices means that we need to do even more to constrain Russia's energy exports," said an open letter from Maria Sternergard, Sweden's Minister for Foreign Affairs, offering support for more tanker boardings and rapid adoption of a proposed price cap freeze.