Reuters reported the development stating that the decision mirrors a recent step taken by the United States, which extended sanctions waivers for purchases of Russian seaborne oil intended to support countries vulnerable to energy shortages.
The move comes as global energy markets continue to face strain following the conflict involving Iran and disruptions around the Strait of Hormuz, a key global shipping route for oil supplies.
Sanctions exemption introduced
Under the new British licence rules, fuels processed outside Russia from Russian-origin crude can enter the UK market, provided companies comply with record-keeping and transparency requirements.
The rules are scheduled to take effect from Wednesday, May 20, and will remain in force indefinitely, although the government said the arrangement would be reviewed periodically and could be amended or withdrawn, as per Reuters.
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Western governments have imposed extensive sanctions on Moscow’s energy exports since Russia’s invasion of Ukraine.
However, Russian crude continues to reach international markets through intermediary countries such as India and Turkey, where it is refined before being exported globally.
Since refined petroleum products are generally not classified as Russian-origin under international trade norms, enforcement of sanctions has become increasingly complex.
Rising fuel costs add pressure
The decision comes at a time when soaring fuel prices are placing additional strain on airlines and households.
The Brent crude prices were trading close to $110 per barrel on Tuesday, May 19, driven by fears of supply disruptions in West Asia, as per Reuters.
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Jet fuel costs have risen sharply in recent months, affecting airline profitability, as fuel expenses account for a significant share of operational costs.
Airlines across several regions have responded through fare hikes, capacity reductions and warnings over weaker financial performance.
Higher energy prices have also intensified living-cost concerns in Britain, where the government is attempting to manage inflation and affordability challenges.
Separately, Britain also issued a temporary licence for maritime transportation and related services involving liquefied natural gas from Russia’s Sakhalin-2 and Yamal LNG projects, as per Reuters.
The licence, covering activities such as shipping, financing and brokering, will remain valid until January 1 next year.
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