UK Opens Door to Diesel and Jet Fuel Made From Russian Crude

The UK government has quietly loosened part of its Russia sanctions regime, issuing a new general trade licence that allows imports and related trade involving diesel and jet fuel refined in third countries from Russian crude oil.

The new authorization, published Tuesday by the UK Department for Business and Trade, creates a standing exemption to restrictions that had targeted so-called “laundromat refinery” trade flows—where Russian crude is processed abroad and re-exported as refined fuels.

The license took effect Wednesday and is of indefinite duration.

Under the license, prohibitions covering Russian-origin processed oil products will no longer apply to diesel (under commodity codes 2710 19 42 and 2710 19 44) and Jet fuel (under commodity code 2710 19 21).

The authorization applies only when the fuels are refined in a third country from Russian crude oil falling under commodity code 2709.

Essentially, diesel and jet fuel made from Russian crude oil are now allowed under UK sanctions rules, as long as the crude was refined outside Russia.

The UK sanctions regime had previously attempted to block imports of fuels refined from Russian crude even if processed outside Russia, targeting a growing global trade route that emerged after Western sanctions disrupted direct Russian oil exports to Europe.

Countries including India, Turkey and the UAE have become major refining hubs for Russian crude since the invasion of Ukraine, with refined fuels often re-entering global markets under non-Russian origin classifications.

The move comes as global fuel markets remain under pressure from the ongoing Strait of Hormuz crisis, elevated tanker freight rates and tightening middle distillate supplies.

The licence states that the exemptions apply to prohibitions under regulations 46Z9F through 46Z9I of the Russia sanctions framework. However, it also warns the authorization does not permit activities where participants “know, or have reasonable grounds for suspecting,” they are breaching other parts of the sanctions regime.

The Department for Business and Trade said the licence will be periodically reviewed and can be revoked or suspended at any time, though officials said they would “endeavour to provide 4 months’ notice” before revocation.

The decision marks one of the clearest acknowledgements yet from a Western government that global refined fuel supply chains remain deeply intertwined with Russian crude flows despite years of sanctions pressure.

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