Australia Indirectly Funds Russia Through Fuel Imports, Analysis Reveals

Australia, despite committing $1.5 billion (US$953 million) in support to Ukraine, has inadvertently channelled even more money to Russia via indirect fuel imports, according to a new analysis.

The Centre for Research on Energy and Clean Air (CREA) reports that Australia has imported more than $3.7 billion worth of fuel refined from Russian-origin crude.

Much of this oil is processed at refineries in India and Turkey, which continue to purchase Russian crude despite widespread international sanctions. The refined fuel is then legally imported into Australia.

CREA estimates these imports have contributed approximately $1.8 billion in tax revenue to the Russian government.

CREA’s EU-Russia analyst, Vaibhav Raghunandan, said the situation highlights “a significant failing of Western sanctions.”

“Refineries in non-sanctioning countries buying Russian oil are acting with impunity, knowing they will face no action from Western countries,” Raghunandan said.

He added that by “looking away,” countries like Australia are inadvertently helping fund Russia’s invasion of Ukraine.

The report noted that Russia earned EUR 242 billion in fossil fuel revenue in the third year of the war, with China, India, and Turkey accounting for 74 percent of that income.

China alone purchased €78 billion (A$138.8 billion) worth of fossil fuels, followed by India at €49 billion and Turkey at €34 billion. Imports by India and Turkey rose year-on-year by 8 percent and 6 percent, respectively.

Government Defends Sanctions Regime

A spokesperson from the Department of Foreign Affairs and Trade (DFAT) said Australia had one of the toughest sanctions in the world.

“Our sanctions restrict the import, purchase, and transport of oil coming from, or originating in, Russia,” the spokesperson said.

DFAT added that these measures are continually reviewed, in coordination with international partners. “We will continue doing what we can to deny Russia access to Australia’s markets and ensure Australia does not inadvertently fund Russia’s war machine,” the spokesperson told The Epoch Times.

Government data shows Australia’s ban on direct imports of Russian energy products—including crude oil and refined fuels—took effect on 25 April 2022, reducing imports from $80 million in 2021 to zero.

However, due to global fuel market dynamics, it is currently difficult for the government to track products that have been substantially transformed in third countries.

These transformed goods fall outside the scope of Australia’s sanctions laws and similar regimes worldwide.

Australia’s Sanctions Footprint on Russia

In February 2025, to mark three years since Russia’s full-scale invasion of Ukraine, Australia imposed new financial sanctions and travel bans on 70 individuals and 79 entities.

The latest round targeted officials supporting Russia’s occupation of eastern Ukraine and Crimea, as well as those responsible for war crimes, sexual violence, and the forced deportation of Ukrainian children.

Australia has now imposed more than 1,400 sanctions in response to the conflict. Since the war began, it has provided over $1.5 billion in support to Ukraine, including $1.3 billion in military aid, equipment, and training for Ukrainian forces.

EU Tightens Pressure on Russian Oil

Speaking at the National Press Club in Canberra on June 11, EU Ambassador to Australia, Gabriele Visentin, unveiled the union’s latest sanctions package.

It targets Russia’s energy and financial sectors, including a plan to cut the G7 oil price cap from US$60 to US$45 per barrel and blacklist 77 ships linked to Russia’s “shadow fleet.”

The package also expands bans on financial transactions to restrict Russian banking operations.

Further export bans will apply to machinery, metals, chemicals, plastics, and dual-use goods with military applications. Companies—both Russian and foreign—that support the Kremlin’s defence industry will face penalties.

Visentin praised Australia’s support for Ukraine and emphasised the need for united global action.

“When Australians support Ukraine, you also support the EU, and so we do. Thank you wholeheartedly,” he said.

He warned of the ongoing threat posed by Russia, saying, “Russia’s goal is not peace. It is to impose the rule of might. Strength is the only language that Russia will understand.”

Sanctions Landscape

According to sanctions tracker Castellum.AI, Russia was subject to 2,695 sanctions before its 2022 invasion of Ukraine.

Since then, that number has surged by 21,692, bringing the total to over 24,000.

The countries and blocs leading the sanctions effort since 2014 include the United States with 7,384 measures, followed by Canada with 3,639, Switzerland with 3,266, the European Union with 2,482, France with 2,423, the United Kingdom with 2,078, Australia with 1,598, and Japan with 1,441.