Britain is purchasing Russian aviation fuel that has been refined in third countries, a practice that critics argue is directly funnelling British money into Vladimir Putin’s war chest. The trade is made possible by a loophole in the government’s own sanctions regime, opened by Sir Keir Starmer’s administration under a new general trade licence that took effect on 20 May 2026.
The loophole that enabled the purchase
The licence, designated GBSAN0004, creates an exemption from the UK’s previous ban on importing refined oil products made from Russian crude when those products have been processed outside Russia. Until this licence was issued, such imports were prohibited. Now, diesel and jet fuel refined from Russian crude in countries including India, China and Turkey can legally enter the UK. The fuel loses its Russian origin on paper during the refining process, allowing it to be shipped to Britain without triggering the original sanctions.
Government officials have defended the move as a “targeted short-term licence” intended to phase in new sanctions while protecting UK consumers from soaring energy prices and supply disruptions linked to tensions around the Strait of Hormuz. They argue that the licence is necessary to maintain market stability and protect critical supply chains, and insist that existing sanctions are not being lifted. However, the licence has no fixed expiry date; it is of indefinite duration and will be periodically reviewed. The government has promised a full ban on diesel and jet fuel made from Russian oil by 1 January 2027 at the latest, but has also stated that the exemption will be lifted “as soon as practicable”, leaving the timeline open to further review.
The practical effect is that the UK, which has a reduced domestic refining capacity and relies heavily on imports, can now buy processed fuel that originates from Russian crude without technically violating its own sanctions. The vast majority of the UK’s imports from refineries processing Russian oil are jet fuel and diesel.
How British money funds the Kremlin
Critics argue that the financial impact is direct and measurable. According to research cited in the briefing, between December 2022 and November 2023 – before the new licence even took effect – the UK imported £444 million worth of jet fuel made from Russian crude. That volume generated an estimated £144 million in tax revenue for the Kremlin. The current licence opens the door for more such trade, potentially increasing the flow of British money to Moscow.
Opposition figures have seized on the figures. The Conservative leader, Kemi Badenoch, accused the government of hypocrisy, saying it had “chosen to buy dirty Russian oil”. The former prime minister Boris Johnson also voiced strong opposition, describing the decision as a “total disgrace” and questioning why Britain – of all countries – would now be buying Russian aviation fuel under a loophole “recently opened by Keir Starmer”. Neither the government nor Downing Street has directly responded to the accusations that British cash is helping fund Putin’s war machine.
The controversy is deepened by investigations that have suggested potential violations of the existing price cap on Russian crude oil by UK-insured tankers, which could have generated millions more for the Kremlin.
Political and international backlash
The move has drawn criticism from beyond Britain’s borders. Ukrainian officials and MPs have expressed deep disappointment and concern, with one MP stating that the decision “puts a question mark” over the UK’s friendship with Ukraine. Ukraine is reported to be in active talks with the British government to clarify the implications of the licensing rules.
The European Union has also criticised the UK, saying London failed to coordinate with G7 partners before introducing the licence and that the move came as a “surprise” to allies. The EU insists that now is not the time to ease sanctions, because Russia continues to benefit from high energy prices. The UK government has countered that the broader sanctions package goes “well beyond existing sanctions” and that the temporary licence is part of a phased implementation of new restrictions.
Alongside the fuel imports, the UK has introduced new restrictions on liquefied natural gas (LNG) maritime services, though temporary licences have been issued for certain Russian LNG terminals that will remain in place until 1 January 2027. The government has framed the overall approach as a careful balancing act between maintaining pressure on Russia, ensuring domestic energy security and managing global economic instability.
But for the political critics, the immediate call is clear. “If Starmer wants a legacy, he should end the practice now,” Johnson said. With the licence already in effect and a full ban not promised for at least six months, the pressure is mounting on the prime minister to close the loophole before more British money reaches Moscow.
