Revised UK rules allow diesel and jet fuel refined in third countries using Russian-origin crude to continue entering the UK. The change represents a retreat from earlier commitments to tighten restrictions on Russian oil reaching global and UK markets. The shift is driven by concerns about energy prices and potential supply disruption amid Middle East tensions and instability around the Strait of Hormuz. Earlier pledges emphasized preventing Russian oil from entering UK markets and taking actions to undermine Russia’s ability to continue the war in Ukraine. Diesel and aviation fuel refined outside Russia using Russian crude are permitted, while other products such as petrochemicals and heating oil derived from Russian-origin feedstock remain prohibited. The UK takes a softer approach than the European Union, which maintains restrictions on refined products processed through intermediary countries.
"Under revised rules, diesel and jet fuel refined in third countries using Russian-origin crude will still be permitted into Britain, marking a significant retreat from earlier commitments made by Chancellor Rachel Reeves to clamp down on Russian oil entering global supply chains."
"The reversal comes as ministers grapple with mounting fears over energy prices and potential supply disruption linked to tensions in the Middle East and instability around the Strait of Hormuz, one of the world's most strategically important shipping routes."
"However, the Treasury and energy officials have since faced growing concern over the inflationary impact of tighter restrictions on refined fuel imports, particularly following disruption linked to conflict involving Iran and fears surrounding the closure of Hormuz."
"While diesel and aviation fuel refined outside Russia using Russian crude will now be allowed, other products - including petrochemicals and heating oil derived from Russian-origin feedstock - remain prohibited."
Read at London Business News | Londonlovesbusiness.com
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