Australia under pressure by AFUO for billions in Russian-linked fuel imports

The Australian Federation of Ukrainian Organizations (AFUO) and lawmakers have intensified calls to close a loophole in Canberra’s sanctions regime, which bans direct imports of Russian oil but allows fuel from third-party refineries that process Russian crude oil. 

Their calls are based on findings by the Center for Research on Energy and Clean Air (CREA) and which say that Australia has imported more than $3.7 billion worth of fuel refined from Russian crude since 2023, and which generated about $1.85 billion in tax revenue for Moscow. 

The latest call came after the United States imposed an additional 25 percent tariff on India for profits earned from reselling Russian oil.

U.S. Treasury Secretary Scott Bessent criticized India for buying cheap Russian crude.

“India is just profiteering. They are reselling…This is what I would call the Indian arbitrage — buying cheap Russian oil, reselling it as product…it’s unacceptable,” Bessent said.

Meanwhile, Australia remains the largest importer of petroleum products from Indian refineries processing Russian crude, primarily Reliance Industries’ plant in Jamnagar. In the first half of 2025, about 55% of the refinery’s crude came from Russia.

While the U.S. and EU have already taken steps to close this loophole — the EU plans to ban imports of petroleum products made from Russian crude in third countries starting January 2026 — Australia continues to allow such imports.

“This is not a technicality — it is a deadly loophole. Every dollar Russia earns from oil sales is a dollar funding missiles, drones and tanks that kill Ukrainians. It is unacceptable that, in 2025, Australia is still importing fuel made from Russian crude,” said AFUO Chair Kateryna Argyrou. 

Argyrou said that the U.S. and EU are already taking action and called on Canberra to follow their example.

“I think of the mothers in Ukraine who have lost their children, of families torn apart. Every litre of fuel imported from Russian crude prolongs this suffering. Australia must act now,” she said.

The AFUO is demanding that the Australian government ban fuel from refineries using Russian crude, implement mandatory supply chain disclosure for all imported petroleum products, and impose strict penalties for violators.

The organization also called on major importers, including BP, ExxonMobil, and Ampol, to ensure transparency in their supply chains and to stop using fuel made from Russian crude.