Australia’s ‘blood oil’ loophole: AFUO urges government to stop funding Russia’s war machine

Since July 2025, eight tankers carrying Russian oil have passed through Australian ports, generating up to $123.4 million in revenue for Kremlin ruler Vladimir Putin’s regime, according to a new analysis released by the Australian Federation of Ukrainian Organisations (AFUO).

The most recent vessel, Proteus Stephanie, docked at Sydney’s Port Botany on Oct. 26 with 58,000 tons of fuel is an import that could’ve delivered $12.5 million directly to Russia’s war coffers, the AFUO says.

Although the Albanese government has pledged $1.5 billion in aid to Ukraine, the AFUO warns that Australian fuel imports may have simultaneously funneled more than $2 billion to Moscow through indirect oil procurement. 

“Every liter of fuel containing Russian crude funds the weapons which are hitting Ukrainian hospitals and kindergartens, killing innocent civilians,” said AFUO Chair Kateryna Argyrou.

Australia’s growing reliance on fuel that is refined in India, which now sources about one-third of its crude from Russia, has made it the world’s largest buyer of Russian-derived fuel products. 

The AFUO stresses that this is a matter of policy, not necessity.

“This isn’t about fuel security or price — it’s about choice. Australian importers are deliberately choosing Indian refineries like Reliance when cleaner alternatives exist,” Argyrou said.

Energy expert Mark Corrigan, who testified before the 2024 Senate Inquiry into Australian Support for Ukraine, said shifting away from Russian-linked refineries would have no impact on fuel availability or cost. 

AFUO has named BP, ExxonMobil, Ampol, Viva Energy, and Caltex among the main importers and is calling for transparent supply chain disclosures and legislative action to block oil refined from Russian crude. 

The organization is calling on the Australian government to join allied nations in closing loopholes that sustain the Kremlin’s war economy. 

“Australians would never knowingly pay for weapons that kill civilians,” Argyrou said. “Yet through inaction, that’s exactly what our imports are doing. It’s time to stop the blood oil.”

Australian fuel imports from India, which now sources around 34 percent of its crude from Russia, have surged from less than 1 percent before the invasion to 10 percent of the Australian market, making Australia the largest buyer of Russian-derived refined fuel products in the world, the organization reports.