Britain will allow imports of diesel and jet fuel refined abroad from Russian crude under a sanctions carve-out, watering down restrictions to help ensure supply at home as prices soar due to the conflict in the Middle East.
While Britain's support for Ukraine remains steadfast, junior treasury minister Dan Tomlinson said, he added that the national interest had to come first and therefore a loosening of certain sanctions on some Russian products for now made sense.
"We have to make sure that we protect the security of supply for really important foundational goods in our economy, such as jet oil," he told the BBC on Wednesday.
The move follows a similar step by the United States, which on Monday extended a sanctions waiver allowing purchases of Russian seaborne oil to support energy-vulnerable countries hit by supply disruptions linked to the Iran conflict and the closure of the Strait of Hormuz.
Thousands of Sanctions Remain
Since Russia launched a full-scale invasion of Ukraine in 2022, Britain has sanctioned more than 3,200 individuals, businesses and ships under its Russia sanctions regime, to try to disrupt Russia's actions and help Kyiv.
Under the carve-out, sanctions will be eased on jet fuel and diesel refined in third countries, such as India and Turkey and which could be derived from Russian oil, opening up more supplies for Britain.
Brent crude on Wednesday was trading at around $110 a barrel, near recent highs, reflecting concerns over disrupted flows through the strait.
Critics said the changes will allow the Kremlin to earn more money and fund the war against Ukraine.
Tomlinson defended the change as a "sensible decision" to help ensure the security of supply and help industry, airlines and households with rising prices. He said Britain continued to support Ukraine by providing billions of pounds of military equipment and through the multiple sanctions that remain.
Airlines in April warned about potential shortages of jet fuel supplies for the summer, but recently struck a more bullish tone on availability, although carriers worldwide have hiked fares and some have cut flights.
The new rules take effect on Wednesday and will be of indefinite duration, though they will be reviewed periodically and can be amended or revoked, the government said in a notice.
Separately, Britain on Tuesday issued a time-limited licence covering the maritime transportation of liquefied natural gas from Russia's Sakhalin-2 and Yamal projects and related services - including shipping, financing and brokering - under Russia sanctions rules, running until January 1 next year.
Sakhalin-2, based in Russia's Far East, and Yamal LNG in the Arctic, are among the country's largest gas export projects.
(Reuters - Reporting by Sam Tabahriti and Sarah Young; Editing by David Goodman, Daniel Wallis, Elizabeth Piper and Philippa Fletcher)