Australia has continued to import significant volumes of Russian-origin oil products through third countries despite sanctions imposed after the invasion of Ukraine, according to new trade analysis.
Data compiled by the Centre for Research on Energy and Clean Air (Crea) indicates Australia has bought more than 3m tonnes of refined fuels of Russian origin since January 2023, routed chiefly through Singapore.
Australia ceased direct purchases of Russian fuel in 2022. However, current sanctions permit the import of refined products obtained via third countries, provided the goods are not bought from sanctioned entities. Crea’s Europe analyst, Vaibhav Raghunandan, said this framework has allowed Australian buyers to continue sourcing fuels that ultimately support Russia’s oil production and tax receipts. “This is a significant loophole being exploited by Australian buyers who, while on the right side of the law, are undoubtedly on the wrong side of the ethics of it,” he said. He added that such flows “undermine Australia’s support for Ukraine” and enable companies to profit from Russian-origin supplies.
Singapore has emerged as a pivotal hub. Government statistics show that since January 2023 nearly a quarter of Australia’s refined petroleum imports have originated there. Over the same period, Singapore has taken receipt of more than 22m tonnes of refined oil products from Russia, according to an analysis of Kpler shipment data by Australian chemical engineer Mark Corrigan, which Crea says it has verified. About one-third of those Russian volumes were delivered to the Jurong Port Universal Terminal, a major storage and blending facility in Singapore that is part-owned by a Macquarie investment fund.
Macquarie said the terminal is majority-owned by a Singapore government-owned entity and operates under Singaporean and international rules. A terminal spokesperson said it applies “robust processes” and is “fully compliant with applicable laws and sanctions”. Neither Macquarie nor the terminal provided details of how Macquarie has benefited financially from its investment, and neither guaranteed that no Russian-origin fuels handled at the site had been sold into Australia.
The identification of a link between an Australian financial institution’s portfolio and a key node in Russia-linked fuel flows has prompted calls for greater disclosure. Kateryna Argyrou, chair of the Australian Federation of Ukrainian Organisations, urged Macquarie to review the investment and state whether the terminal has facilitated the handling of Russian oil. “Australia cannot stand with Ukraine while Australian capital helps sustain Russia’s war economy,” she said. “Every drop of Russian oil sold helps finance the destruction of Ukrainian homes and lives. Australians deserve to know whether their banks and investment funds are profiting from that.” The Singaporean government has been approached for comment.
Corrigan’s analysis also points to transactions with major trading houses active in Australia. The Jurong facility has sold oil to Trafigura and Vitol, he said. Trafigura in August received a A$135m government bailout connected to its South Australian smelter operations. Vitol supplies Viva Energy, the operator of Shell-branded petrol stations and a supplier to the Australian Defence Force. Spokespeople for Trafigura, Vitol and Viva Energy each said their firms comply with all applicable laws and sanctions, with Trafigura adding that it does not trade with sanction-designated entities and Vitol citing rigorous compliance policies and an open relationship with authorities. None provided an assurance that Russian-origin fuels have not been bought or sold to Australian businesses, consumers or government agencies.
The Foreign Minister, Penny Wong, told Senate estimates in October that companies should ensure their supply chains do not indirectly fund the Russian state. “Australians do expect that their businesses ensure that their supply chains don’t inadvertently fund Russia’s illegal and immoral invasion of Ukraine. Businesses should uphold that responsibility and expectation,” she said. The government has not committed to tightening import rules further, citing difficulties in tracing indirect purchases. The Department of Foreign Affairs and Trade said Australia is assessing options to increase pressure on Russia’s oil revenues.
The European Union and the United Kingdom announced in October that, from 2026, they will sanction third-party refiners of Russian material, including via targeted measures against specific terminals and refineries. Legal scholars argue that similar steps would be necessary for Australia if it intends to curtail indirect Russian oil income. Dr Anton Moiseienko, a senior lecturer in law at the Australian National University, said: “It’s really important to move towards that step. Otherwise [refineries] … keep purchasing Russian oil, and then refined products go to places like Australia, and all of that combines to create a market that generates billions for the Russian government.”
The current Australian regime relies on corporate due diligence and the segregation of sanctioned entities from permissible trade, but the opacity of global oil blending and storage complicates origin tracing. The Singapore hub’s scale, and the growth in Russian product inflows since 2023, illustrate the enforcement challenge facing governments that restrict direct trade yet permit refined products from complex supply chains.
