UK delays sanctions on third-party Russian oil products as new restrictions announced
New figures show petrol prices have eclipsed the previous high set during the Iranian oil crisis, as ITV News Political Correspondent Romilly Weeks reports
The prime minister has insisted he is not lifting sanctions on Russian oil "in any way whatsoever" after being accused of easing restrictions on oil refined in third-party countries.
Speaking during Prime Minister's Questions on Wednesday, the PM said the "strong new package" of sanctions announced on Tuesday goes "well beyond" existing measures.
The government has been eager to push back on claims of easing sanctions, after issuing a trade licence which allows for the import of jet fuel and diesel refined in third countries amid surging costs due to the Iran war.
It has been heavily criticised by Conservative leader Kemi Badenoch, who said it is "insane" to water down sanctions when the UK government is refusing to fully exploit North Sea resources.
The Labour chairwoman of the Foreign Affairs Committee, Dame Emily Thornberry, also criticised the move, telling BBC Radio 4’s Today programme: "They [Ukraine] don’t understand, given that we promised that we would stop this loophole in October, and we still haven’t done it. In fact, it seems to have got worse. People feel very let down."
Trade minister Sir Chris Bryant later apologised to MPs for the government’s "clumsy" handling of the issue and said he wanted the licence to be as "temporary as possible".
He apologised and insisted the measures would strengthen the sanctions regime on Russia.
On Wednesday, the government banned these imports but issued a temporary trade license, creating an exemption to phase in the ban.
Bryant insisted the trade license issued today was a temporary exemption, and once lifted, would result in the underlying sanctions banning these products completely.
The government pledged to close this loophole, which allowed the import of Russian oil products from third-party countries in October last year.
At the time, a government press release announced: "To further restrict the flow of funds to the Kremlin, the UK has today announced that we will ban imports of oil products refined in third countries from Russian-origin crude oil.
"By removing Russian oil from the market, taking steps towards peace and in turn building a more secure Europe, we are directly strengthening the UK’s national and energy security – key foundations of this government’s Plan for Change."
The trade licence, which came into effect on Wednesday, permits the imports “indefinitely”, and comes amid rising prices as a result of the conflict in Iran and the closure of the Strait of Hormuz.
According to the licence, the sanctions carve-out will be periodically reviewed as fuel prices fluctuate.
The government had previously announced the UK would block Russian oil refined in other countries in a bid to “further restrict the flow of funds to the Kremlin”.
On Wednesday evening, Downing Street said Starmer “reaffirmed the UK’s steadfast support for Ukraine” in a call with the country’s president, Volodymyr Zelenskyy, in which they discussed sanctions on Russian oil.
In a summary of the call, a No 10 spokesperson said that Starmer "set out our ongoing commitment to do everything possible to debilitate and degrade Putin’s war machine".
“He outlined how the UK was ramping up measures to crack down on Russia’s economy, including through the new package of sanctions announced yesterday, and that as a result of the UK’s actions to date, there will be less Russian oil on the market, with Russia weaker as a result.
“The leaders reiterated the need to keep the pressure on Russia and welcomed the strength of the UK-Ukraine relationship.
“The prime minister paid tribute to the people of Ukraine for their enduring courage in the face of Russia’s ongoing aggression. They looked forward to speaking again soon.”
Earlier this week, US Treasury Secretary Scott Bessent extended a 30-day sanctions waiver allowing the purchase of Russian oil shipments already at sea.
“This extension will provide additional flexibility, and we will work with these nations to provide specific licenses as needed,” he posted on X.
It comes amid new figures showing petrol prices have eclipsed the previous high set during the Iran oil crisis.
On Tuesday, the RAC said the average price of a litre of petrol at UK forecourts stands at 158.5p, which is the most expensive it has been since December 2022.
Following the beginning of the conflict in the Middle East on February 28, the price had previously peaked at 158.3p on April 15.
Responding to the government's announcement of a temporary carve-out for third-country Russian oil products, Ukraine's head of sanctions policy, Vladyslav Vlasiuk, said he understood why the UK had made the decision it had, but disagreed with the approach.
"Pressure on Russia should only increase, while market stability should be ensured by addressing root causes — Hormuz," Vlasiuk wrote in a post on X.
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Earlier in the Commons, the PM announced the abandoning of plans to increase fuel duty from September.
Starmer told MPs: "I can announce today that we are giving our hauliers a 12-month road tax holiday, helping to keep prices down."And we are backing drivers by extending the freeze in fuel duty for the rest of the year."
The chancellor had previously announced in her November 2025 budget that the 5p per litre fuel duty reduction – introduced by the Conservative government in March 2022 – would be extended until the end of August 2026, with rates then gradually returning to previous levels over the next five years.
The government estimates this will save the average motorist over £120.
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