Australia continues to import petroleum products from Russia through sanctions loophole
Illustrative photo: Australia continues to import petroleum products from Russia (Getty Images)
Australia has imported more than 3 million tons of fuel of Russian origin into the country since 2023, The Guardian reports.
Although direct imports of petroleum products from Russia to Australia are banned, new data indicates a loophole in the sanctions system. The country can receive petroleum products if they have been processed in third countries.
According to calculations by the CREA analytical center, more than 3 million tons of fuel have entered Australia this way since 2023.
CREA analyst Vaibhav Raghunandan emphasizes that this scheme effectively supports the growth of oil production in Russia and increases the revenues of its budget.
According to him, this situation not only maintains the presence of Russian oil on the global market but also allows Australian companies to profit from these operations.
Official statistics show that since January 2023, about 25% of Australia’s imports of refined oil have come from Singapore.
Role of Singapore
An important link in this supply chain is the Jurong Port Universal Terminal in Singapore, which is partially owned by Macquarie Bank’s investment fund. Analysts estimate that about one-third of Russian petroleum products arriving in Singapore pass through this terminal.
In response to journalists, Macquarie stated that the terminal’s controlling stake belongs to a Singaporean state entity, and its operations comply with local and international laws. At the same time, the bank did not confirm whether Russian-origin oil had been sold to Australia through the terminal.
The terminal supplied fuel to major trading companies such as Trafigura and Vitol. Subsequently, Vitol resold this fuel to companies including Shell and the fuel network operator Viva Energy, which supplies fuel to the Australian Armed Forces.
Australia imposes sanctions on Russian oil
In September, Australia decided to lower the price cap on Russian oil from $60 to $47.60 per barrel. The government also imposed sanctions on 95 more ships from Russia’s shadow fleet.
The country implemented these measures alongside the European Union, the United Kingdom, Canada, New Zealand, and Japan. At the same time, Australia maintains a full ban on imports of oil and petroleum products from Russia.
