The UK has finally put a date on the sanctions loophole it said it would close a while ago.
The British government said Friday that imports of diesel and jet fuel refined from Russian crude in third countries will be banned no later than January 1, 2027, closing one of the remaining routes by which Russian oil products can still find their way into the UK market.
The move builds on sanctions announced in May that prohibit the import of refined oil made from Russian crude, even if that refining occurred outside Russia. At the time, however, London carved out a temporary license allowing imports of diesel and jet fuel to continue while supply chains adjusted.
In other words, Russian crude could be shipped to a third country, refined there, and the resulting fuel could still legally enter the UK. The government now says that arrangement has an expiration date.
Officials stressed that the current license is subject to review every two weeks and could be terminated earlier if market conditions allow. Industry will receive at least four months’ notice before any changes take effect.
The UK has already banned direct imports of Russian crude and refined products, but policymakers have increasingly targeted what they see as backdoor routes that blunt the impact of sanctions.
Trade Minister Chris Bryant called the January 2027 deadline a “clear signal” that Britain intends to maintain maximum pressure on Russia’s economy.
The government also highlighted restrictions introduced in May on maritime services related to Russian LNG, part of a broader effort to squeeze Moscow’s energy revenues.
Whether the measure meaningfully dents Russia’s finances is another question. Russian crude has spent the past several years taking increasingly creative journeys around the globe before reappearing as something else. Sanctions have made those routes more expensive and more complicated, but they haven’t exactly eliminated them.
The UK says international sanctions have deprived Russia’s economy of more than $450 billion since the invasion of Ukraine. London has now sanctioned more than 3,300 individuals, companies, and vessels under its Russia sanctions regime.
By Julianne Geiger for Oilprice.com
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