The Labour government eased restrictions on diesel and jet fuel refined from Russian crude oil in third countries. The change partially reverses earlier sanctions designed to limit energy revenue flows linked to Russia. The adjustment is justified as an energy security measure amid concerns about global supply disruptions and potential fuel shortages. Officials warned that restricting refined fuel imports could worsen shortages and raise prices for consumers and businesses. The policy allows certain diesel and aviation fuel products to enter the UK even when the original crude oil is Russian, as long as it is processed in third countries. A new license permits imports refined in places such as India and Turkey due to soaring global oil prices and fears of aviation fuel shortages.
"The Labour government has quietly eased restrictions on diesel and jet fuel refined from Russian crude oil in third countries. This significant policy adjustment is driven by growing concerns over global supply disruptions and potential fuel shortages. This move marks a partial reversal of previous sanctions aimed at tightening the flow of energy revenues linked to Russia. It reflects mounting pressure on ministers as energy markets are strained by the prolonged closure of the Strait of Hormuz."
"Officials have justified this change on the grounds of energy security, warning that restrictions on refined fuel imports may worsen shortages and increase prices for consumers and businesses. The adjustment allows certain diesel and aviation fuel products to enter the UK, even if the original crude oil is of Russian origin, provided it has been processed in third countries."
"The UK had previously banned imports of fuel products refined abroad using Russian crude oil as part of sanctions imposed after Russia's invasion of Ukraine. Now, soaring global oil prices and fears of aviation fuel shortages have forced ministers to issue a new license allowing imports of diesel and jet fuel refined in countries such as India and Turkey."
"“When supply shocks hit global markets, consumers and businesses ultimately pay the price through higher fuel costs, inflation, and travel disruption,” said Salem. “The government's decision today demonstrates a profound lack of foresight on energy policy. For years, we have argued that Britain should pursue greater energy independence through domestic production and drilling. Instead, the government is once again forced into an embarrassing international U-turn because it failed to secure reliable energy supplies at home.”"
#uk-energy-policy #diesel-and-aviation-fuel-imports #sanctions-on-russia #energy-security #global-oil-supply-disruptions
Read at London Business News | Londonlovesbusiness.com
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