UK Defers Ban on Russian Oil-Derived Fuel Imports Amid Iran War Supply Pressures

Britain on May 20, 2026 deferred a ban on diesel and jet fuel imports refined from Russian crude oil in third countries like India and Turkey, originally announced in October 2025, citing supply pressures from the Iran war that has pushed Brent crude to $109 per barrel—50% higher than pre-war levels. The UK issued a licence until January 2027 allowing these imports as the country faces a structural deficit, with four refineries producing 1 million barrels per day against demand of 1.35 million barrels per day, 61% of which is diesel and jet fuel. The decision drew sharp criticism from Conservative opposition leader Kemi Badenoch and Ukrainian officials who accused Britain of funding Russian military operations, while Prime Minister Keir Starmer defended it as a phased sanctions approach necessitated by Middle East disruptions to the Strait of Hormuz.

UK Russian fuel import deferral

• ▪Britain is deferring a ban on Russian-derived fuel imports that was first announced in October 2025
• ▪Britain issued a licence on May 19, 2026 until January 2027 to cover the maritime transportation of liquefied natural gas from the Sakhalin-2 and Yamal projects
• ▪The carve-out allowing Russian-derived fuel imports takes effect on May 20, 2026
• ▪Britain announced on May 20, 2026 that it will continue to allow imports of diesel and jet fuel refined from Russian crude in third countries
• ▪Trade department minister Chris Bryant stated the measures were being taken in the light of the situation in the Middle East

Iran war supply disruptions

• ▪Brent crude was trading at around $109 a barrel on May 20, 2026, which is 50% higher than before the Iran war
• ▪Airlines in April 2026 warned about potential summer shortages of jet fuel supplies
• ▪The United States on May 18, 2026 extended a sanctions waiver allowing purchases of Russian seaborne oil to support energy-vulnerable countries hit by supply disruptions

Criticism from lawmakers

• ▪Ukrainian opposition lawmaker Oleksiy Honcharenko stated the British decision was deeply disappointing and raised a question mark over Britain's support
• ▪Conservative opposition leader Kemi Badenoch accused Prime Minister Keir Starmer of choosing to buy dirty Russian oil that will fund the killing of Ukrainian soldiers
• ▪Senior Labour lawmaker Emily Thornberry stated that Ukraine had been very let down by the British decision

UK refining capacity gap

• ▪Britain's four active refineries have a combined capacity of around 1 million barrels per day
• ▪Britain's total product demand in March 2026 stood at 1.35 million barrels per day
• ▪Imports from India, Kuwait, Saudi Arabia and the UAE accounted for 35% of Britain's middle distillate imports in 2025
• ▪61% of Britain's total product demand is for diesel and jet fuel, which Britain does not produce enough of
• ▪Britain has four active refineries as of May 2026, down from nine in 2000
• ▪In 2025, Britain imported 483,000 barrels per day of middle distillates

G7 sanctions on Russia

• ▪Britain joined a G7 statement on May 19, 2026 reaffirming an unwavering commitment to impose severe costs on Russia
• ▪Britain has sanctioned more than 3,200 individuals, businesses and ships since Russia launched a full-scale invasion of Ukraine in 2022

Perspective of Critics of the UK deferral (Conservative opposition and Ukrainian officials)

• ▪Ukrainian opposition lawmaker Oleksiy Honcharenko stated the British deferral decision raised questions about the reliability of Britain's support for Ukraine