Federal Election 2025: Albanese government indirectly funnelling potentially billions to Russia through third-party oil imports while also supporting Ukraine

The Albanese government appears to have been funding both sides of the Russo-Ukraine War after it was revealed that Australia has been importing products made from Russian crude.

This has triggered calls for Canberra to significantly strengthen its sanctions regime to completely stamp out any loopholes.

Australia was recently identified as the “single biggest buyer” of oil products from India and Turkey, which purchase about 37 per cent and six per cent of Russia’s crude exports, respectively.

The federal government spent as much as A$5.7 billion on these products in the third year of the Russian invasion of Ukraine, according to the Centre for Research on Energy and Clean Air.

This spending raises serious questions about the effectiveness of Australia’s sanctions framework, which may be unintentionally funding Moscow’s war effort.

The Russian product, processed in third-party countries, has continued to be imported despite the government banning direct imports of Russian fossil fuels in 2022.

Prime Minister Anthony Albanese avoided the question when asked about these oil imports on Tuesday, reiterating Australia’s strong support for Ukraine.

“Our position on Ukraine is very clear. We stand with the people of Ukraine and we stand with President Zelensky,” he said.

“We want to make sure the illegal, immoral actions of Russia are not rewarded, and that Vladimir Putin and his imperialistic designs are not rewarded or encouraged.”

However, the recent findings of a parliamentary inquiry exposed blatant loopholes in the enforcement of government sanctions.

Despite Australia’s ban on Russian fossil fuel imports, the complex web of international trade means that Russia’s oil still enters Australia through third-party refineries.

This loophole allows Russia to maintain vital revenue streams, undermining the sanctions designed to penalise its aggression in Ukraine.

The Senate report cited data that said Australia imported more than 1.4 million tonnes in refined oil from at least four countries sourcing Russian crude.

Shadow foreign affairs minister David Coleman told Sky News the government had been “sitting” on the report for more than a month.

“A Senate inquiry report last month highlighted this issue. It recommended that the government take action to strengthen sanctions enforcement,” he said. 

“These are serious recommendations which the government should respond to prior to the election.”

The Department of Foreign Affairs and Trade told Sky News it had imposed restrictions on oil coming from, or that originated in, Russia.

“Australian imports of Russian energy products have fallen from $80 million in 2021 to zero,” a DFAT spokesperson said. 

“Our sanctions and trade measures have been carefully calibrated to deny Russia access to Australia’s markets and ensure Australia does not inadvertently fund Russia’s war machine.

“DFAT closely monitors these measures, which are in line with those of international partners, including all G7 members.”

Other G7 countries besides Australia, including France and Italy, have also been called out for importing oil products from country’s purchasing crude from Russia.

Meanwhile, Senior Lecturer at the Australian National University Law School Anton Moiseienko argued Australia has “barely utilised” sanction powers. 

“Australia has had the legal ability to impose ‘thematic’ sanctions in response to various categories of malign activity. These powers have been barely utilised,” he said in his Senate submission. 

“Some of Australia’s perceived reluctance to implement a vigorous sanctions policy may be motivated by concerns about its diplomatic ramifications.”

Amnesty International Australia’s Strategic Campaigns Manager, Kyinzom Dhogdue, told Sky News the government needs to ensure it doesn’t fund human rights abuses.

“Amnesty has documented widespread violations of international human rights and humanitarian law in Ukraine since Russia’s full-scale invasion,” she said.

“Its strategy and tactics, including continued use of indiscriminate weapons and deliberate targeting of civilians, have caused widespread human suffering.”

“In addition to the legislated sanctions imposed against Russia in response to its invasion of Ukraine, Australia also has obligations under international human rights law to ensure it is not directly or indirectly funding human rights abuses.”

Another concern among experts has been the fact that Australia depends too heavily on imported oil due to inadequate fuel stockpiles. 

Director of Law and Policy at the Institute of Public Affairs John Storey told Sky News it was a matter of national security. 

“The bottom line is Australia has barely enough liquid fuels to last a month should our supplies from foreign refineries be interrupted,” he said. 

“We must maintain significant onshore stocks of diesel and aviation gasoline to support the ADF in military operations and to enable the functioning of Australian society should there be a conflict.

“This is a vital national security issue, the federal government must end decades of gestures and half measures, which have failed to build national strategic fuel reserves, and invest in credible levels of onshore storage and refining.”

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