Fuel importers warned over breaches of Australian law
Fuel importers have been warned they could breach Australian sanctions law by importing Russian-origin oil processed in third countries, as the federal government comes under pressure to restrict revenue streams funding Vladimir Putin’s war on Ukraine.
The Department of Foreign Affairs and Trade’s sanctions office last week issued new advice to companies on how to ensure they do not breach Australia’s sanctions regime on Russian oil.
Unlike previous recommendations, the new guidance note emphasized that oil imports cannot escape Australian sanctions because oil originating from Russia is mixed with other oil products from third countries such as India or Singapore.
Although it doesn’t go as far as campaigners would like, updated advice It uses stronger language and contains significantly more detail than Previous official advice dated June 2025.
Since 2022, Australia has imported about $24.7 billion worth of oil from countries that refine Russian crude, generating an estimated $2.5 billion in tax revenue for the Kremlin, according to the Center for Research on Energy and Clean Air.
Mark Corrigan, a chemical engineer who helped uncover Russian oil shipments entering Australia through sanctions loopholes, said importers could face hundreds of millions of dollars in fines if they violate the rules.
This imprint’s “Blood Oil” series, published last year, highlighted the large amounts of Russian oil flowing into Australia since the beginning of the war.
The new DFAT advice, published on Tuesday, states that “Russian oil and refined petroleum products are prohibited from being imported into Australia unless authorized by the Secretary of State.”
The guidance states that blended petroleum or petroleum products containing small amounts of Russian-origin petroleum or more than refined petroleum are prohibited under the law.
Imports of “substantially transformed” Russian oil are allowed only in third countries.
“The Australian Enforcement Office does not consider the adulteration of petroleum products to constitute a significant transformation,” the memo says.
“The blending process does not cause the commodity to lose its identity; blended goods retain the same tariff code, use and character as ‘import certified goods’ for Russia… The risk of sanctions increases if a contracted supplier maintains supply arrangements with known producers of Russian petroleum products.”
The guide includes a number of examples, including an Australian fuel retailer looking to purchase and import a consignment of fuel from Singapore. In its discussions with the exporter, the Australian company determines that there is a high risk of mixing a very small amount of Russian origin fuel into the fuel.
“Since the product has not undergone a significant transformation, it cannot be accepted that some of the fuel originating from Russia originates from the exporting country. [and] The note states that imports of the fuel into Australia are prohibited without a permit.
The memo states that it is the importer’s responsibility to “be aware of the sanctions and take the necessary steps to ensure that the oil and refined petroleum products they import, purchase or transport are not of Russian origin.”
The Ukrainian-Australian community wants the government to be more assertive and align with the European Union by changing the definition of sanctioned goods to include all oil products derived from Russian crude oil.
Corrigan said the new advice showed the government was listening to community anger over the issue but had “still failed to turn off the valve on Russian oil entering the Australian fuel market”.
“The EU has asked importers to remove Russian oil from any supply route, while Australia maintains a vague policy of allowing the same material if it is ‘substantially converted Russian oil’,” he said.
“Given that fines can be three times the value of sanctioned goods imported and a single tanker can carry $100 million worth of oil products, a successful investigation would go a long way in cleaning up Australia’s blood-soaked oil supply.”
He said the guidance suggested importers from Indian refineries may be breaching Australian sanctions law because of rules included in the Australia-India free trade agreement.
Australian Petroleum Institute president Malcolm Roberts told a Senate hearing last week that tighter regulations would allow Australian importers to renegotiate contracts with overseas refiners processing Russian oil.
“If the law changes significantly, the importer will have the opportunity to trigger a contract review,” he said.
The government this week lowered the Russian oil ceiling price from $47.60 to $44.10 per barrel in a move designed to reduce the market value of Russian crude.
Clancy Moore, director general of Transparency International Australia, said: “Australia’s sanctions against Russian organizations and individuals who support Putin’s corrupt regime send an important foreign policy signal and could help cut funding for Russia’s brutal war against the Ukrainian people.”
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