Notably, the Licence was published without prior announcement, on the same day the new Chapter 4IB import ban was due to take effect. In practice, it carves out the two product categories that constitute the vast majority of the UK's imports of refined Russian-origin oil products, meaning the new ban has limited immediate impact on existing supply chains for diesel and jet fuel.

What does the Licence cover?

The Licence applies only to products falling within the following commodity codes:

• 2710 19 42 or 2710 19 44: diesel
• 2710 19 21: jet fuel

All other oil products derived from Russian crude remain subject to the new import ban. The Licence does not override any other provisions of the Russia Regulations, if an act would breach another sanctions rule, the Licence does not authorise it. Standard record-keeping obligations under regulation 76 continue to apply, as do any Windsor Framework obligations for Northern Ireland.

The Secretary of State may vary, revoke, or suspend the Licence at any time, with aim to give at least four months' notice before revocation.

Why has the Government done this?

The UK banned direct Russian energy imports in 2022. However, a gap in the sanctions framework allowed over £4 billion of jet fuel and other oil products refined from Russian crude in third countries, principally India, to continue entering the UK market. Ministers had committed to close this loophole by spring 2026, most recently reaffirming that position in April.

The policy reversal is driven by supply disruptions from the US–Israeli conflict with Iran, including the effective closure of the Strait of Hormuz, which has pushed Brent crude to around US$110 per barrel. A separate temporary licence has also been issued for liquefied natural gas from certain Russian plants. Trade Minister Chris Bryant described both exemptions as "temporary" and stated that the government would "suspend them as soon as we possibly can," whilst acknowledging that the communication of the decision could have been handled better.

How does this compare with the US and EU approach?

The US Treasury extended its own sanctions waiver for Russian oil cargoes already at sea, renewed for a second time in May 2026. The EU, by contrast, has taken a harder line, with Economics Commissioner Valdis Dombrovskis stating at the G7 finance ministers' meeting that it was not a time to "ease pressure on Russia". Reports suggest that certain European counterparts and Ukraine were not consulted before the UK's decision.

Can I use this licence in the UK Overseas Territories or Crown Dependencies?

In general terms, unfortunately not, as each UK Overseas Territory and Crown Dependency is responsible for issuing their own licences despite the fact that the underlying trade sanctions are based on the UK sanctions regime. We are keeping track of developments in the Harneys jurisdictions and will update this blog in due course as and when further licences are issued.

What should compliance teams do now?

Market participants should note the following points:

• Narrow scope: The Licence covers only diesel and jet fuel under the specified commodity codes. All other Russian crude products remain prohibited under Chapter 4IB. Compliance screening processes should be updated to reflect this distinction.
• Revocation risk: Although the Licence has no fixed end date, it can be revoked on four months' notice. This creates uncertainty for longer-term supply contracts and procurement planning.
• Ongoing monitoring: DBT guidance should be monitored closely. The Government has stated its intention to withdraw the exemption once supply conditions normalise, so the position may change at relatively short notice.

The General Licence can be accessed here.