‘Loophole’ in sanctions allowing Russian oil to be imported to Australia through port part-owned by Macquarie Bank | Australia news

New data shows millions of tonnes of Russian oil are being traded, some of it through a port owned by Macquarie Bank, and potentially sold to Australian businesses.

The identification of a new link between Australia and trade in Russian origin products reveals further loopholes in government sanctions as Australia lags behind Europe and the UK in tightening import rules.

The Europe-based Energy and Clean Air Research Center (Crea) revealed that Australia stopped buying fuel directly from Russia after invading Ukraine, but has imported more than 3 million tons of Russian-origin oil products since 2023.

Australia’s sanctions allow purchases through third countries, including Crea’s Europe analyst Vaibhav Raghunandan said Russia indirectly supports oil production and the Kremlin’s tax revenues.

“This is a significant loophole exploited by Australian buyers who, although on the right side of the law, are undoubtedly on the wrong side of ethics,” Raghunandan said.

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“It clearly weakens Australia’s support for Ukraine… This not only ensures the continued flow of Russian oil, but also allows Australian companies to profit from it.”

Australia has bought almost a quarter of its refined oil imports from Singapore since January 2023, government data shows.

The Southeast Asian country received more than 22 million tonnes of refined petroleum products from Russia during the period, according to an analysis of Kpler trade data by Australian chemical engineer Mark Corrigan and verified by Crea.

A third of those volumes went to the Jurong Port Universal Terminal, which is partly owned by a Macquarie investment fund.

A Macquarie spokesman said the terminal is majority-owned by a Singapore government entity and is subject to relevant Singapore and international regulations. A terminal spokesman said it has robust processes to ensure due diligence and is fully compliant with applicable laws and sanctions.

When asked, neither explained how Macquarie benefited financially from its investment in the terminal or ensured that the terminal did not sell Russian oil to Australia.

Kateryna Argyrou, president of the Australian Federation of Ukrainian Organizations, called on Macquarie Bank to review its investment and clarify whether the terminal facilitates the transportation of Russian oil.

“Australia cannot stand by Ukraine while Australian capital helps sustain Russia’s war economy,” Argyrou said.

“Every drop of Russian oil sold helps finance the destruction of homes and lives in Ukraine. Australians deserve to know whether their banks and investment funds are profiting from this.”

The Singapore government has been contacted for comment.

sales from singapore

Government officials have previously stated that companies operating in Australia are legally purchasing oil from Indian facilities, with heavy Russian imports. approved. Corrigan’s analysis showed that the same thing could happen in Singapore.

The analysis showed the Macquarie-owned terminal sold oil to companies such as Trafigura and Vitol, which received a $135 million government bailout for smelters in South Australia in August.

Shell gas station operator and Australian defense force supplier Viva Energy buys oil from Vitol. Spokespeople for Vitol, Viva Energy and Trafigura said their businesses were in full compliance with all applicable laws and regulations, including sanctions.

When asked, they did not guarantee that they did not purchase or sell Russian-origin petroleum products to Australian businesses, consumers and government agencies.

A spokesman for Trafigura said it did not trade with sanctioned entities, and a spokesman for Vitol said it had strict policies and sought an open and transparent relationship with authorities wherever it operated.

Foreign Affairs Minister Penny Wong has called on businesses to ensure their supply chains do not indirectly fund the Russian government.

“Australians expect their businesses to ensure their supply chains do not inadvertently fund Russia’s illegal and immoral invasion of Ukraine. Businesses must uphold this responsibility and expectation,” Wong told Senate estimates in October.

He rejected a commitment to restrict trade further, saying the government would have difficulty tracing indirect purchases. A spokesman for Australia’s Department of Foreign Affairs and Trade said Australia was considering options to put further pressure on Russia’s oil revenues.

European Union And United Kingdom In October, it announced sanctions on third-party refiners of Russian material starting in 2026, including targeting specific terminals and refineries.

Dr D., a senior lecturer in law at the Australian National University. According to Anton Moiseienko, the implementation of these sanctions will be essential to reduce the Kremlin’s oil revenue.

“It’s really important to move towards this step,” he said.

“Otherwise [refineries] … You keep buying Russian oil, then the refined products go to places like Australia, and all of that combines to create a market that generates billions of dollars for the Russian government.”