Kateryna Argyrou: Ban still leaks Moscow oil

by Kateryna Argyrou, Chair of the Australian Federation of Ukrainian Organizations

Source: the Herald Sun

New sanctions deployed by the Albanese government to target 60 vessels linked to Russia’s ‘shadow fleet’ is a move in the right direction, but it’s only a small step.

It represents the first time Australia has imposed sanctions against the “shadow” or “dark” fleet the Kremlin uses to ship its crude oil and other exports to circumvent wider sanctions that are designed to strangle Russia’s economy and deprive Moscow of funds to fuel its war against Ukraine.

But, as reported by the Herald Sun just over a week ago, Russian autocrat Vladimir Putin and his oligarchs are exploiting a gaping loophole that continues to allow third-country refiners to process Russian crude and legally on-sell it to international markets.

Analysis by the Helsinki-based Centre for Research on Energy and Clean Air found Australia was the biggest buyer of petroleum refined using high concentrations of Russian crude feedstock at several refineries located in India, particularly the massive Jamnagar Refinery in India, with about 10 per cent also coming through a separate New Mangalore refinery.

Petroleum imported into Australia containing Russian crude oil since the start of 2023 has generated an estimated $1.85bn in oil taxes within Russia for payment to the Kremlin, CREA says.

By comparison, Australia has provided slightly less, $1.5bn, in military and humanitarian support for Ukraine’s defence.

Foreign Minister Penny Wong announced on Wednesday the shadow fleet sanctions, saying they would, together with sanctions from other nations, cut into Moscow’s oil exports and ability to fund its invasion.

“Russia uses these vessels to circumvent international sanctions and sustain its illegal and immoral war against Ukraine,” Senator Wong said.

“Operating under deceptive practices, including flag-hopping, disabling tracking systems, and operating with inadequate insurance, the shadow fleet enables the illicit trade of Russian oil and other sanctioned goods.”

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