An international coalition of nearly 100 civil society organisations has written to Prime Minister Anthony Albanese demanding urgent legislation to stop petrol and diesel refined from Russian crude oil in third countries entering Australia. The coalition says the trade should not continue to help finance Russia’s war in Ukraine, while Australian Federation of Ukrainian Organisations chair Kateryna Argyrou said Australia was becoming a 'dumping ground for blood oil'.
The B4Ukraine Coalition estimates Australia has imported $16.5 billion worth of petroleum products made partly from Russian oil since the full-scale invasion of Ukraine in 2022, potentially generating $1.7 billion in tax revenue for the Kremlin. Almost 70 per cent of oil exported to Australia from Brunei's Hengyi refinery in the first seven months of this year was Russian-derived, a Finnish think tank found.
Australia banned direct imports of Russian crude and petroleum products in 2022, but the restrictions do not automatically prevent Russian oil from being refined elsewhere before being exported to Australia. The European Union prohibited fuel refined from Russian crude in third countries in January, followed by Britain in May, as European restrictions redirected Russian-linked fuel towards other markets.
“With two months having passed since the report’s publication, and 12 months since we first called for action, we are concerned that the Government has yet to outline concrete steps to address this issue,” B4Ukraine executive director Nezir Sinani wrote.
Kateryna Argyrou, chair of the Australian Federation of Ukrainian Organisations, said Australia was falling behind its allies. “Our allies have shown a ban can work. With Europe now closed to this fuel and our door still open, Australia is becoming a dumping ground for blood oil,” she said. She argued a phased ban with a clear timetable would not threaten fuel security: “Relying on fuel made from Russian oil isn’t fuel security either.”
Energy Minister Chris Bowen has previously said Australia neither needs nor wants Russian fuel, but campaigners say those declarations require enforceable restrictions. They urge Albanese to commit to a ban on Russian-derived fuel, introduce legislation and set an implementation timetable.
Separately, the Australian Forest Products Association has backed Nationals MPs in calling for tougher action on timber imports. A departmental trial found that about one in four timber products tested did not match their declared species, origin or both, and the department has tested no consignments for Russian content this year, with only 2.2 full-time staff working on compliance. Association acting chief executive Richard Hyett said Russian-sourced timber could be entering Australia’s construction industry through blended products including plywood. “This latest evidence suggests significant volumes of Russian timber continue to find their way into the Australian market, despite existing sanctions,” he said.
Foreign Minister Penny Wong and the Department of Foreign Affairs and Trade were contacted for comment.
Analysis
Why This Matters
- Australia's sanctions against Russia have significant loopholes that allow billions of dollars of Russian-derived fuel and potentially timber to enter the country, undermining the intended economic pressure on Moscow.
- The issue places Australia out of step with key allies such as the EU and UK, which have already closed similar loopholes, potentially damaging the country's reputation as a reliable partner in the sanctions regime.
- The outcome could affect fuel supply chains, as refiners in India and Brunei have become major suppliers of Russian-derived fuel to Australia, and any ban would require careful transition planning.
Background
Australia banned direct imports of Russian crude oil and refined petroleum products soon after Russia's full-scale invasion of Ukraine in 2022. However, the restrictions did not cover products made from Russian oil in third countries, a gap the current coalition wants closed. The European Union and Britain have since introduced measures that effectively block such indirect imports, while Australia's imports of Russian-derived fuel have grown.
The B4Ukraine Coalition is an international network of nearly 100 civil society organisations campaigning to limit the economic resources available to Russia for its war effort. Its letter follows a Senate inquiry in August that called for stronger sanctions enforcement.
Key Perspectives
B4Ukraine Coalition (Nezir Sinani): called for a ban on imports from any refinery or port that has received Russian crude or refined products in the preceding six months, closing the loophole that allows blending, re-exporting or further processing. The letter warned that the government has not outlined concrete steps despite repeated calls.
Australian Federation of Ukrainian Organisations (Kateryna Argyrou): said Europe and the UK have proved a ban can work, and a phased ban with a clear timetable would be different from no ban at all. She rejected concerns about fuel security.
Energy Minister Chris Bowen: has previously stated that Australia neither needs nor wants Russian fuel and that Moscow should not be rewarded for the invasion, but the government has not introduced a ban on Russian-derived fuel processed abroad.
Australian Forest Products Association (Richard Hyett): flagged evidence that Russian timber could be entering through blended products, highlighting weak enforcement and understaffing in compliance checks.
What to Watch
- The government's formal response to the B4Ukraine letter, expected in the coming weeks, and whether it commits to legislation or a transition period.
- Whether a ban on Russian-derived fuel gains cross-party support, particularly given the Nationals' involvement on the timber issue.
- The impact on fuel prices and supply if Australia moves to align with EU and UK restrictions, especially from key refining hubs such as Brunei and India.
Checked
12 claims in this story checked against 1 source: 12 supported.
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- SupportedThe coalition is urging Australia to ban Russian-derived fuel.Sydney Morning Herald - Latest News: “An international coalition of organisations has written to Prime Minister Anthony Albanese demanding urgent legislation to stop petrol and diesel refined from Russian crude oil in third countries entering Australia.”
- SupportedKateryna Argyrou said Australia was becoming a “dumping ground for blood oil”.Sydney Morning Herald - Latest News: ““Our allies have shown a ban can work. With Europe now closed to this fuel and our door still open, Australia is becoming a dumping ground for blood oil,” she said.”
- SupportedNezir Sinani wrote that the government had yet to outline concrete steps, despite two months since the report and 12 months since the coalition first called for action.Sydney Morning Herald - Latest News: ““With two months having passed since the report’s publication, and 12 months since we first called for action, we are concerned that the Government has yet to outline concrete steps to address this issue,” executive director Nezir Sinani wrote.”
- SupportedRichard Hyett said significant volumes of Russian timber continued to reach the Australian market despite existing sanctions.Sydney Morning Herald - Latest News: ““This latest evidence suggests significant volumes of Russian timber continue to find their way into the Australian market, despite existing sanctions,” he said.”
- SupportedB4Ukraine estimates Australia has imported $16.5 billion worth of petroleum products made partly from Russian oil since the 2022 full-scale invasion.Sydney Morning Herald - Latest News: “The B4Ukraine Coalition – a group of nearly 100 civil society organisations campaigning to strip Russia of economic resources for its war – estimates Australia has imported $16.5 billion worth of petroleum products made partly from Russian oil since Moscow’s full-scale invasion of Ukraine in 2022”
- SupportedThose imports potentially generated $1.7 billion in tax revenue for the Kremlin.Sydney Morning Herald - Latest News: “potentially generating $1.7 billion in tax revenue for the Kremlin.”
- SupportedAlmost 70 per cent of oil exported to Australia from Brunei’s Hengyi refinery in the first seven months of the year was Russian-derived, according to a Finnish think tank.Sydney Morning Herald - Latest News: “Almost 70 per cent of oil exported to Australia from Brunei’s Hengyi refinery in the first seven months of the year was Russian-derived, a Finnish think tank has found.”
- SupportedAustralia banned direct imports of Russian crude and petroleum products in 2022, but the restrictions do not automatically prevent Russian oil refined elsewhere from being exported to Australia.Sydney Morning Herald - Latest News: “Australia banned direct imports of Russian crude and petroleum products in 2022, but the restrictions do not automatically prevent Russian oil being refined elsewhere before being exported to Australia.”
- SupportedThe European Union prohibited fuel refined from Russian crude in third countries in January, followed by Britain in May.Sydney Morning Herald - Latest News: “The European Union prohibited fuel refined from Russian crude oil in third countries in January, followed by Britain in May.”
- SupportedA departmental trial found about one in four timber products tested did not match their declared species, origin or both.Sydney Morning Herald - Latest News: “A departmental trial found that about one in four timber products tested did not match their declared species, origin or both.”
- SupportedThe department tested no consignments for Russian content this year.Sydney Morning Herald - Latest News: “Yet the department confirmed it had tested no consignments for Russian content this year”
- SupportedThe department had the equivalent of 2.2 full-time staff working on compliance.Sydney Morning Herald - Latest News: “and had the equivalent of just 2.2 full-time staff working on compliance.”