The United Kingdom has exempted Nigeria from stricter compliance requirements under its new sanctions targeting fuels refined from Russian crude oil in third countries, according to new guidance released by British authorities and analysed by S&P Global.
The new import restrictions, which came into force on May 20, are aimed at closing the so-called “refining loophole” that allowed countries to refine Russian crude into products such as gasoline, diesel, and jet fuel before exporting them to Western markets.
Under the latest rules, it was learnt that the UK banned imports of refined products, including petrol, naphtha, paraffin, lubricants, and waste oils produced from Russian crude oil.
However, Nigeria was listed among countries classified as net oil exporters that would not be subjected to stricter proof-of-origin requirements for fuel exports to the UK.
According to the report, 63 countries were exempted from the tougher oversight regime, according to trade data from the International Energy Agency.
The S&P report stated, “Using trade data from the International Energy Agency, 63 countries were classed as net exporters exempted from stricter oversight, including Saudi Arabia, Kuwait, Kazakhstan, Libya, and Nigeria.”
The UK said refiners and exporters from exempted countries would not be required to demonstrate compliance with the new restrictions unless British customs authorities had “reasonable grounds to believe” that exports were not produced from locally sourced crude oil.
The sanctions framework mirrors the European Union’s enforcement guidelines introduced earlier this year to curb indirect flows of Russian oil products into Europe.
Under the UK system, refiners that purchase Russian crude can still export fuel to Britain if they can physically separate Russian and non-Russian crude streams throughout the storage, transportation, and refining processes.
Where such segregation is not possible, importers are expected to prove that the supplying refinery had not received or processed Russian oil for at least 60 days before exports were made.
The guidance also advised UK buyers to obtain assurances from suppliers confirming that imported fuels were not refined from Russian crude oil.
S&P Global said the tighter measures are expected to majorly affect refiners in countries such as India and Turkey, which have emerged as major buyers of discounted Russian crude and important suppliers of refined fuels to Europe since the outbreak of the Russia-Ukraine war.
The report noted that countries and jurisdictions already operating their own sanctions regimes against Russian crude oil, including the European Union, the United States, Canada, Norway, Switzerland, Australia, and New Zealand, would also be exempt from additional compliance obligations.
Despite the tougher restrictions, the UK government granted indefinite waivers for diesel and jet fuel imports due to concerns over supply costs and business impacts, especially as tensions in the Middle East disrupted fuel supplies.
According to guidance from the UK Department for Business and Trade, the Secretary of State intends to provide four months’ notice before withdrawing the waiver.
S&P Global data showed that the UK increasingly relied on fuel imports from the United States in recent months, with the US supplying about 144,000 barrels per day of oil products to Britain in April, nearly half of total imports.
The report added that Britain imported roughly 75 per cent of its jet fuel and 50 per cent of its diesel requirements in 2025, including substantial supplies from Middle Eastern producers such as Kuwait.
