According to the independent research organisation Centre for Research on Energy and Clean Air (CREA), Australia has been importing oil products refined from Russian crude oil through third countries, including India.
While direct imports of Russian crude are banned, the oil is entering the country legally after being refined in India and other third-party nations.
India has become a central player in this supply chain. Its massive refineries, particularly Reliance Industries’ Jamnagar plant and Nayara Energy’s Vadinar facility, have processed large volumes of Russian oil. These refined products are then exported globally including to countries with sanctions against Russia, like Australia.
More than $3.7bn in fuel containing Russian crude oil has been bought by Australia after being processed in Indian refineries since sanctions against Russia were announced in 2023, an international trade tracking analysis shows.
The complexities in enforcing sanctions are highlighted as the product coming into Australia from Jamnagar is sourced from the Russian state owned agency Rosneft. Reuters has reported that in 2024 that Reliance Industries signed a deal with Russia’s Rosneft to buy at least 3 million barrels of oil a month and pay for it in roubles. Rosneft is controlled by the Russian government. The company and its management are under sanctions in Australia.
Russia became one of the most sanctioned countries in the world after their invasion against Ukraine in 2022. Sanctions are meant to achieve policy change in the country and in Russia case, these were meant to push Russia towards a resolution to the Ukrainian conflict. But about three years on, there is no end to the conflict and sanctions against Russia have not been able to bite.
According to the International Energy Agency (IEA), Russia’s crude oil and oil products export revenues hit $192 billion in 2024 with China buying 47% of Russia’s crude exports, followed by India (37%), the EU (6%), and Turkey (6%).
Analysts say that refining nations like India and China have become vital links in the global oil supply chain, allowing Russian oil to quietly continue flowing to markets that have banned direct imports.
“The fact that Australia is importing fuel tied to Russian crude highlights the difficulty of enforcing sanctions in a globalised energy market,” said a CREA analyst. “Legal frameworks are being outpaced by the realities of international trade.”
This network highlights the complexities of enforcing sanctions and the strategic roles played by countries like India in global oil trade. Russian Oil Australia India
The situation raises broader questions about the effectiveness of economic sanctions and the need for reform. Some experts suggest that sanctions must be updated to account for indirect trade routes and refined product sourcing if they are to achieve real impact.
For now, Australia’s imports of refined Russian crude remain legal but controversial, reflecting a complex intersection of legal, economic, and geopolitical dynamics.
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