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Analysts warn that this scheme undermines Australia’s support for Ukraine.
After Russia’s full-scale invasion of Ukraine, Australia halted direct fuel purchases from Russia. However, since 2023, the country has imported over 3 million tons of Russian oil products via Singapore. According to The Guardian, part of the sales passed through a port partly owned by Australia’s Macquarie Bank.
Australian sanctions do not prohibit buying oil products through third countries. But, as Crea Europe analyst Vaibhav Raghunandan explained, this indirectly supports Russian oil production and provides tax revenue to the Kremlin. “This is a serious loophole exploited by Australian companies. Formally, they do not break the law, but they clearly ignore its moral dimension. This scheme undermines Australia’s support for Ukraine, as it not only maintains the flow of Russian oil but also profits from it,” he said.
Engineer Mark Corrigan found that Singapore imported over 22 million tons of Russian oil products during this period. A third of these shipments went through the Jurong universal terminal, part-owned by Macquarie. The company said the terminal is ultimately owned by the Singaporean state and operates according to local and international regulations. The terminal claims to have strict compliance procedures and adheres to all legal and sanction requirements.
None of the companies clarified Macquarie’s profits from the terminal or whether it supplied Russian oil to Australia. Kateryna Argyrou, head of the Australian Federation of Ukrainian Organizations, called on Macquarie Bank to review its investments and disclose the terminal’s involvement in handling Russian oil. She stressed that Australia cannot claim support for Ukraine if Australian capital effectively funds Russia’s war economy. Every drop of Russian oil sold contributes to the destruction of Ukrainian homes and lives, and Australians have the right to know if their banks and investment funds profit from this.
Australian companies legally purchased oil from Indian facilities, effectively importing Russian products, as government sources previously reported. Corrigan’s analysis suggests similar activity may have occurred via Singapore.
The terminal reportedly sold oil to Trafigura and Vitol. In August, Trafigura received AUD 135 million in government support for refineries in South Australia. Shell, an Australian fuel retailer, and Viva Energy, a supplier for the Australian Defence Force, purchase oil from Vitol. Representatives from Vitol, Viva Energy, and Trafigura stated their companies comply with applicable laws and sanctions but did not confirm whether Russian oil products were sold to Australian companies, consumers, or government entities. Trafigura said it does not work with sanctioned organizations, and Vitol emphasized strict policies and transparency with authorities in all countries of operation.
Foreign Minister Penny Wong urged companies to ensure their supplies do not fund the Russian government. “Australians expect companies to ensure their supply chains do not finance Russia’s illegal and immoral invasion of Ukraine. Businesses must take responsibility and meet these expectations,” Wong said during a Senate review in October.
She declined to guarantee additional trade restrictions, citing difficulties for the government in monitoring indirect purchases. A spokesperson for the Department of Foreign Affairs and Trade said the government is evaluating further measures to pressure Russia’s oil revenues.
Previously, sea shipments of Russian crude oil had dropped sharply, the largest decline since January 2024, due to US sanctions that forced major buyers to avoid Moscow oil. Unloading fell more than loading, as tankers accumulated large volumes of oil awaiting sale.
Recently, Australia implemented additional measures to limit Russia’s oil revenues, lowering the cap price on Russian oil and sanctioning 95 “shadow fleet” vessels. The cap price was reduced from $60 to $47.60 per barrel, aiming to decrease market value and cut revenue for Russia’s economy.
