UK Grants Indefinite License for Importing Russian-Origin Fuel Amid Market Pressures
London authorizes indefinite import of diesel and aviation kerosene from Russian oil processed abroad, effective May 20, responding to energy price pressures.
On May 19, the UK government announced the issuance of an indefinite license permitting the import of diesel fuel and aviation kerosene derived from Russian crude oil but processed in third countries. This license takes effect on May 20 and is designed to circumvent existing sanctions imposed on Russian energy exports.
The move comes amid rising fuel prices in the UK exacerbated by the ongoing conflict involving Iran, adding pressure on the government to address high living costs and energy availability challenges. The license will be subject to periodic reviews despite having no fixed expiration date.
Strategic Adjustment in Energy Sanctions Amid Global Tensions
This decision follows a similar action by the United States, which on May 18 extended licenses for maritime shipments and sales of Russian-origin oil and petroleum products, aiming to support vulnerable countries affected by supply disruptions related to the conflict in Iran.
"The temporary licensing framework is intended to mitigate supply shocks for nations most affected by the Iran conflict," stated US Treasury officials.
Separately, the UK government has authorized maritime transport of Russian liquefied natural gas (LNG) until January 1, 2027, further easing restrictions amid energy market volatility.
It is important to contextualize that the UK imposed bans on importing Russian crude oil and coal in 2022 following Russia's full-scale invasion of Ukraine. In October 2025, the UK also prohibited importing petroleum products produced in third countries from Russian crude as part of a broader sanction package targeting Russia's shadow fleet.
However, an increase in Russian oil exports and rising prices amid the US-Israel-Iran conflict have driven Moscow's revenues from petroleum exports to their highest levels since the start of the Ukraine war. According to Bloomberg, weekly payments for Russian oil supplies reached an average of $2.42 billion (approximately €2.07 billion) by May 3.
With the Strait of Hormuz blockage disrupting global energy flows, Washington has opened several markets to Russian oil by easing certain sanctions, influencing the UK’s policy adjustment.
Market participants should monitor how these licensing changes impact trading volumes, sector rotation within energy commodities, and pricing dynamics in the near term.
