UK and US in Lockstep to Allow Russian Oil as EU Rages
Jakarta, CNBC Indonesia - The British government has officially decided to exempt imports of diesel fuel and aviation turbine fuel produced from Russian crude oil, provided they have undergone refining in a third country. The move, controversial, follows a similar policy from the United States (US) that extends sanctions relief for Moscow.
Quoting The Guardian on Wednesday (20 May 2026), the Russia-Ukraine war, now in its 1,547th day, has been characterised by economic concessions by Western powers to dampen domestic inflation.
Russian crude oil has long been shipped to countries such as India and Turkey for refining, then re-exported as locally produced products. Critics say the practice of ‘oil-washing’ is being deliberately allowed so that the Kremlin can continue to harvest fresh revenue to fund its war machine in Ukraine.
The UK authorities emphasise that this relaxation in the energy imports regime is aimed at curbing rising living costs for the domestic population, and the policy is also projected to continue periodically for an undetermined period.
‘This new rule comes into effect on Wednesday and will be in force indefinitely, although the rule will be reviewed periodically and may be amended or repealed,’ the official government announcement read.
EU Furious at US
The unilateral sanctions-relief decision taken by Washington and London has prompted a wave of strong protests from other Western allies, particularly the European Union bloc. The EU’s economic authorities regard the move announced by US Treasury Secretary Scott Bessent as highly inappropriate, given Russia is enjoying abundant economic benefits from the global energy disruption caused by the war that is also raging in Iran.
‘From the European Union’s perspective, we do not think this is a time to ease pressure on Russia,’ said EU Economic Commissioner Valdis Dombrovskis at a press conference on Tuesday.
Dombrovskis added that Russia is the biggest beneficiary of the war in Iran and the current spike in fossil-fuel prices. He also mocked his Washington counterpart’s claim that the policy is merely an emergency measure.
‘Minister Bessent assured us that this is a temporary action, but we know that this is already the second extension of a measure that was originally intended to last only 30 days,’ Dombrovskis said.
In addition to approving diesel products, the UK on Tuesday also launched new special licences to facilitate LNG shipping from Russia’s Sakhalin-2 and Yamal projects. The licences, which cover shipping, financing, and international brokerage, will continue to operate legally under sanction law until 1 January 2027.
High Tension: Russia and the Baltics
On the other hand, geopolitical tensions on the front lines reportedly surged after Moscow issued threats of open military action against Latvia at the United Nations. The Russian Foreign Intelligence Service (SVR) accused Ukraine of devising a meticulous plan to launch waves of drone strikes into Russia, utilising the sovereignty of the Baltic states Latvia, Lithuania and Estonia.
Mutual threats escalated when a Russian diplomat at the UN asserted that NATO membership would not protect these states if it were proven to aid the Ukrainian military.
‘This is no time for threats against members of the council. NATO membership will not shield you from retaliation,’ warned Russia’s Ambassador to the UN Vasily Nebenzya during the UN General Assembly.
A sharp response from the United States envoy reaffirmed Washington’s commitment to its European allies.
‘There is no room for threats against members of the council. The United States upholds all of its NATO commitments,’ replied US Ambassador to the UN Tammy Bruce.
Meanwhile, representatives from the Baltic states responded to the threats with cool detachment, stating that Moscow’s accusations are a sign of military desperation. Latvia’s representative emphasised that their country has never allowed its airspace to be used to attack Russia, while tensions were further complicated after a Romanian NATO F-16 shot down a drone over Estonia following electronic-signal disruption from the Russian military.
’ Lies, aggressive disinformation, and threats are signs of desperation and weakness,’ said Latvia’s UN representative Sanita Pavļuta-Deslandes.