Australians could be unknowingly supporting Russia’s invasion of Ukraine when they put fuel in their cars, according to a new report that found Australia is still likely importing products made from Russian oil via Indian refineries.
The imports have continued despite Australia signing up to global sanctions against Russia for its invasion of Ukraine, the report by the Centre for Research on Energy and Clean Air (CREA) said.
Indian refineries have spent €7bn (AU$10.2bn) on Russian oil since the end of February compared with buying little crude prior to the war, with most of that being spent since May. Other regions have also increased purchases of Russian oil, gas and coal, earning Russia €158bn – more than its estimated €100bn cost of the war so far, the report said.
“Our analysis shows that Australia is receiving oil cargoes from Indian refineries who are importing large volumes of Russian crude oil,” the lead analyst at CREA and a co-author of the report, Lauri Myllyvirta, said.
“Tighter tracking of oil shipments are needed to avoid Russia bypassing oil import bans, and Australia needs to be vigilant about where its fossil fuels are coming from to avoid being complicit in Russia’s war crimes,” he said.
The director of the climate and energy program at the Australia Institute, Richie Merzian, said Australians “would be concerned to know they could be unwittingly filling up at the bowser with Russian oil”.
“This is only the latest example of Australia’s national security problem when it comes to transport fuels,” he said.
Data compiled by the centre detailed 13 ships reaching Australian ports since the start of March from the western Indian port of Sikka that serves Reliance Industries’ Jamnagar refinery. The vessels carried crude oil, oil products or chemicals.
“We have no way to know for sure whether Russian molecules are being shipped to Australia,” Myllyvirta said. “The question is, does the Australian customs?”
A spokesperson for Australia’s Department of Foreign Affairs and Trade said no shipments of oil or petroleum products had arrived in Australia directly from Russia after a ban “on certain Russian energy products, including oil and refined petroleum” came into effect from 25 April 2022.
But the sanctions do not prohibit imports of products that have been substantially transformed in a third country, and Australia does not collect data on the source of crude or other feedstock used in refineries in India or elsewhere.
Ampol, an operator of one of Australia’s two refineries, said the company backed efforts “in Australia and internationally against Russia in support of Ukraine and its people, and complies with the current sanctions regime in place”.
“Ampol has not purchased Russian crude oil or products since the conflict commenced,” the spokesperson said. “Ampol sources finished petroleum products from around the world, including some products certified as originating from India.
“We will continue to report data on our product imports to the Australian government and review and comply with any new protocols to support an effective sanctions regime.”
Guardian Australia has sought comment from Reliance Industries, one of India’s biggest conglomerates, and from Viva, the operator of Australia’s other refinery.
Research by the Australia Institute found 91% of liquid fuels come from imports, leaving the country almost entirely reliant on foreign oil and exposed to international disruptions and embargos.
“The previous federal government refused to deliver its final liquid fuel security review in 2019 and since then Australia has become more, not less fuel insecure,” Merzian said.
“This fuel review should be released along with recommendations on how to better track fuel shipments and help wean the country off foreign oil with demand-side solutions like fuel efficiency standards and electric vehicle incentives.”
Meanwhile, Reuters reported on Tuesday that imports of Russian oil rose by 4.7 times, or more than 400,000 barrels per day, in April-May, but fell in July, without stating how they fared in June.
The agency cited Hardeep Singh Puri, India’s minister of petroleum and natural gas, who said most of the country’s crude oil supplies in the near future would come from Gulf countries, including Saudi Arabia and Iraq, as it sought a secure and affordable energy base.
According to the report, the EU was the largest Russian fossil fuel importer, buying €85bn (AU$124bn) worth since the war began. China was the second-largest importer, spending €35bn (AU$51bn), followed by Turkey at €11bn (AU$16bn), India at €7bn (AU$10bn) and South Korea at €2bn (AU$3bn). Fossil fuel export revenues pumped an estimated €43bn (AU$63bn) into Russia’s federal budget.
