In 2022, Australia officially banned the import of crude oil and refined fuel from Russia in response to the invasion of Ukraine. The aim was to restrict Moscow’s financial income, particularly from energy exports. However, countries such as India and Turkey have since increased their purchases of discounted Russian crude. These nations refine the oil locally and then export the products globally, including to Australia.
Around 10% of Australia's refined fuel imports now come from India, based on official trade data. This has exposed a gap in Australia's sanctions framework. Although the crude originates in Russia, the refined product is considered to be from another country when it enters Australia. Government officials acknowledge there is currently no robust system to trace the complete supply chain of fuel.
A wider concern is that Australia's approach, though intended to be strong, has not been watertight. Advocacy groups caution that these indirect imports still contribute money to Russia’s war effort, weakening the purpose of the sanctions. Some also point out that even if Australia is not buying directly from Russia, the economic and ethical implications are no less significant.
