Ministers pledged earlier this year they would close the loophole in the spring; a commitment the government was still making as recently as last month. However, their position appears to have shifted following shockwaves in the energy market caused by the conflict in the Middle East. The Trump administration has also eased energy sanctions on Russia in recent weeks.
Conservative Leader Kemi Badenoch contrasted the decision to ease sanctions on Russian-origin oil products with the Labour government’s plan to restrict exploration for domestically-sourced oil. “We are now importing from Russia instead of drilling in the North Sea,” she said in a post on X.
Alexander Kirk, sanctions campaigner at the Urgewald group, said: “Celebrations will be happening in the Kremlin today. Russian state media is already seizing on this as proof that Western resolve can be weakened when fuel prices rise.
“The danger here,” Kirk added, “is not just the economic signal, but the political message it sends. Moscow will read this as weakness.”
A government spokesperson told the BBC that ministers were “committed to strengthening our sanctions on Russia” but would also protect “critical supply chains.” The government was approached for further comment.