Labour will allow the flow of Russian oil products into the UK, despite Rachel Reeves previously promising to ban them.The Government has watered down a sanctions package, and will allow Russian diesel and jet fuel to be imported to Britain – so long as the crude oil was refined by other countries.Sanctions were initially placed on Russia in October in a bid to ramp up financial pressure on Vladimir Putin as his invasion of Ukraine rumbled on.But as the Iran war and the closure of the Strait of Hormuz stoked fears of fuel shortages, Labour has U-turned on the ban.Last year, Chancellor Rachel Reeves said the ban was the “right approach to ensure that Russian oil is not finding its way onto global markets and indeed, finding its way into UK markets”.She also said ministers would take “whatever actions necessary to destroy the capability of the Russian Government to continue this illegal war in Ukraine”.Other refined oil products made from Russian-origin crude oil, such as petrochemicals and heating oil, will remain banned.The EU has also banned products refined in other countries but made from Russian oil.Rachel Reeves had said a ban on Russian oil was the ‘right approach’, and the move would ‘destroy the capability of the Russian government’ | GETTYForeign Secretary Yvette Cooper has said the ongoing blockade of the Strait of Hormuz could put the world at risk of “sleepwalking into a global food crisis”.The Government has made proposals to have shops voluntarily cap the prices of essential groceries such as eggs, bread and milk, according to the Financial Times.The Treasury has said it would provide “incentives”, which could include easing packaging policies and delay changes to healthy food rules in exchange.Helen Dickinson, the chief executive of the British Retail Consortium, the leading trade association for retailers, said “higher energy and commodity costs resulting from the Middle East conflict, and the soaring cost of the Government’s domestic policies” were presenting challenges to retailers.Yvette Cooper said the world was at risk of ‘sleepwalking into a global food crisis’ | GETTYThe Chancellor is expected to set out measures to help households with the cost of living on Thursday.The US Government had also eased sanctions on Russia as a result of rising fuel costs, implementing a 30-day sanction waiver which allowed Russian oil to be bought by Indian refiners at sea.US Treasury Secretary Scott Bessent said the move would “help stabilise the physical crude market and ensure oil reaches the most energy-vulnerable countries”.But the move has been slammed by Democratic Senators Jeanne Shaheen of New Hampshire, and Elizabeth Warren of Massachusetts, who said the move was an “indefensible gift” to Vladimir Putin and used to “finance his illegal war against Ukraine and kill innocent Ukrainians”.Vladimir Putin is in China to meet with President Xi Jinping, where the pair are expected to discuss a major oil infrastructure project | REUTERSMr Putin arrived in China on Tuesday to meet with Xi Jinping – just a week after Donald Trump visited the Chinese President in Beijing.In what marks a 25th visit from Mr Putin, the two leaders are set to discuss the Power of Siberia 2, a 1,600-mile gas pipeline which would cut from Russia, through Mongolia, and into China.The infrastructure project would add 50 billion cubic metres of gas capacity to Russia’s flows to China and is seen as the key to making up for lost European markets.China’s fuel imports have also been crippled by a reliance on crude oil from the Strait of Hormuz – which roughly half of its crude oil flowed through.