AFUO says Australia’s oil sanctions loopholes weaken action against Russia

The Australian Federation of Ukrainian Organizations (AFUO) warned on Sept. 19 that escape clauses in Canberra’s oil sanctions could allow Russia to circumvent them and keep funding its war in Ukraine.

The statement followed the government’s recent decision to lower the price cap on Russian oil and impose sanctions on 95 additional vessels in Russia’s covert oil tanker fleet that continue seaborne oil shipments for export. 

“Refineries in countries such as India are still purchasing large volumes of Russian crude outside the price cap system, while Russian-derived fuels refined in third countries continue to enter markets like Australia,” the AFUO said.

The organization said that most of the sanctioned “shadow fleet” vessels do not operate in Australian waters, limiting their direct impact domestically.

AFUO called on Australia to ban imports of petroleum products from third countries or refineries using Russian crude, strengthen monitoring and enforcement, and focus sanctions on Russia’s revenue sources, not just ships that may never enter Australian waters.

“While we acknowledge the Government’s latest sanctions, they will not stop Russia on their own. Australia must now match the stronger action of our European partners and work to close the loophole that allows Russian oil to keep reaching us through third party countries or refineries,” said AFUO Chair Kateryna Argyrou.

Argyrou also said that Australia has transferred over AUD 2 billion to Russia through oil-related taxes since February 2023.

“Every day, Russia’s oil exports pay for bombs and missiles that rain down on Ukrainian cities, hospitals and schools,” she said.