UK Eases Sanctions on Russian Oil Imports Amid Energy Crisis

May 21, 2026

The British government published an open-ended licence on May 21, 2026 allowing imports of diesel and jet fuel made from Russian crude oil in other countries, responding to energy price surges following the Strait of Hormuz closure. A separate licence enables short-term service contracts with Russia's Sakhalin-2 and Yamal LNG projects until January 2027. The European Commission stated on May 22, 2026 that the bloc remains committed to its sanctions on Russian oil and gas imports.

UK sanctions licences

▪The British government published an open-ended licence on May 21, 2026 allowing the import of diesel and jet fuel made from Russian crude oil in other countries, such as Turkey and India
▪A separate British licence enables the provision of short-term service contracts with Russia's Sakhalin-2 and Yamal LNG projects until January 2027
▪British Trade Minister Chris Bryant apologised for the clumsy roll-out of the watered-down sanctions and promised to revise the licences as soon as possible
▪British Prime Minister Keir Starmer framed the licences as short-term measures to protect British consumers

Ukrainian response

▪Vladyslav Vlasiuk, Zelenskyy's sanctions envoy, said the concerns related to the additional revenues that might be generated for Moscow's budget
▪The publication of the British licences caught Ukraine and its European allies by surprise
▪The office of Ukrainian President Volodymyr Zelenskyy said it was in very active communication with its British counterparts to understand the details of the decision

EU position

▪European Commissioner for the Economy Valdis Dombrovkis stated that the EU does not think this is the time to ease pressure on Russia
▪The European Commission stated on May 22, 2026 that the bloc remains committed to its sanctions on imports of Russian oil and gas
▪Paula Pinho, the European Commission's chief spokesperson, called for Russians not to benefit from the ongoing conflict in the Middle East

US waiver extension

▪Washington confirmed on May 20, 2026 it would extend its waiver on Russian oil at sea for the third time this year
▪US Treasury Secretary Scott Bessent argued the waiver extension would provide additional flexibility to the most energy-vulnerable countries
▪The announcement by US Treasury Secretary Scott Bessent coincided with a G7 meeting of finance ministers and central bank governors in Paris

Maritime services ban proposal

▪Brussels is trying to convince Western allies to introduce a far-reaching ban on maritime services including banking, shipping, and insurance for Russian oil tankers
▪The EU has the maritime services ban approved in theory but suspended in practice
▪The proposed maritime services ban would replace the price cap that the G7 has operated since 2022
▪Greece and Malta are adamant that the full maritime services ban must only be imposed if the G7 acts together

G7 coordination challenges

▪The US and the UK are amending their sanctions regimes to cope with the shockwaves unleashed by the closure of the Strait of Hormuz
▪G7 finance ministers left the door open to potential measures on maritime services without committing to a timeline
▪At the end of the G7 meeting in Paris, finance ministers reaffirmed their unwavering commitment to continue to impose severe costs on Russia