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The UK government has been accused of leaving Ukrainians “very let down” after it relaxed its sanctions on Russian crude oil.

The UK had previously announced that it would block Russian oil refined in other nations in a bid to “further restrict the flow of funds to the Kremlin”.

But the government has now shifted its stance, announcing on Wednesday that it will permit the import of jet fuel and diesel refined in third countries amid surging fuel costs.

Ministers have sought to defend the measures as “protecting the UK national interest”, as the closure of the Strait of Hormuz and the ongoing crisis in the Middle East sees costs soar.

But Foreign Affairs Committee chairwoman Dame Emily Thornberry has said she does not back the government’s decision, and said the people of Ukraine have been “very let down” by the move.

The UK government has been accused of leaving Ukrainians “very let down” after it relaxed its sanctions on Russian crude oilThe UK government has been accused of leaving Ukrainians “very let down” after it relaxed its sanctions on Russian crude oil (AFP/Getty)

“We are talking about our allies in Ukraine who have been fighting a war bravely against Russia for years and years with our support,” the Labour MP told BBC Radio 4’s Today programme.

“They have looked to Britain as one of their most important allies, and they don’t understand, given that we promised that we would stop this loophole in October, and we still haven’t done it. In fact, it seems to have got worse. People feel very let down.”

Tory leader Kemi Badenoch called the move to waive some of the sanctions “insane”.

She posted on X: “After 18 months of ‘standing up to Putin’ the Labour govt quietly issued a licence allowing imports of Russian oil refined in third countries.

Sir Keir Starmer risked opening a fresh rift with Donald Trump earlier this year by vowing that Britain wouldn’t be following the US in lifting sanctions on Russian oilSir Keir Starmer risked opening a fresh rift with Donald Trump earlier this year by vowing that Britain wouldn’t be following the US in lifting sanctions on Russian oil (PA)

“Yesterday Labour MPs voted against UK oil and gas licences. We are now importing from Russia instead of drilling in the North Sea. Insane.”

US treasury secretary Scott Bessent, earlier this week, extended a 30-day sanctions waiver allowing the purchase of Russian oil shipments already at sea.

Sir Keir Starmer risked opening a fresh rift with Donald Trump earlier this year by vowing that Britain wouldn’t be following the US in lifting sanctions on Russian oil, saying that the move risks helping Vladimir Putin’s “war machine”.

Just two months later however, ministers were forced to defend the decision to ease restrictions on Russian oil.

The average price of a litre of petrol is now 158.5p (PA)The average price of a litre of petrol is now 158.5p (PA) (PA Wire)

Treasury minister Dan Tomlinson told Sky News: “When there are international conflicts, we’ve just been talking about the conflict in Iran, talking about the conflict in Russia … what we have to do as a government is make sure that we’re protecting the UK national interest, making sure that this impact of conflicts that wash up on our shore, that we’re protecting individual families.”

He later added: “The government has announced yesterday this time-limited change to the rules around oil and refining given the extremes of the impacts of the conflict in Iran, and the impact of it washing up on our shores.”

A new trade licence allows these imports “indefinitely” and specifies that the sanctions carve-out will be periodically reviewed as fuel prices continue to rise.

It comes amid new figures showing petrol prices have eclipsed the previous high set during the Iran oil crisis.

On Tuesday, the RAC said the average price of a litre of petrol at UK forecourts stands at 158.5p, which is the most expensive it has been since December 2022.

Following the beginning of the conflict in the Middle East on February 28, the price had previously peaked at 158.3p on April 15.

It has been widely reported that on Thursday, Chancellor Rachel Reeves will abandon her plan to increase fuel duty from September.

She announced in her November 2025 budget that the 5p per litre fuel duty reduction – introduced by the Conservative government in March 2022 – would be extended until the end of August 2026, with rates then gradually returning to previous levels over the next five years.

The Treasury has been contacted for comment.