New data indicates that millions of tons of Russian oil have been transshipped through a port partly owned by Macquarie Bank and potentially sold to Australian companies, The Guardian reports, writes UNN.
Details
The discovery of a new link between Australia and the trade in Russian-origin products reveals additional gaps in government sanctions, as Australia lags behind the EU and the UK in tightening import rules, the publication writes.
Australia stopped buying fuel directly from Russia after Russia's invasion of Ukraine, but since 2023, it has imported more than 3 million tons of oil products of Russian origin, found the European Centre for Research on Energy and Clean Air (Crea).
Australia's sanctions allow the purchase of oil through third countries, which, according to Crea analyst in Europe Vaibhav Raghunandan, indirectly contributed to the growth of oil production in Russia and the Kremlin's tax revenues.
"This is a serious loophole that Australian buyers are exploiting, who, while adhering to the law, are undoubtedly violating ethical norms," Raghunandan said.
"This clearly undermines Australia's support for Ukraine. It not only allows the continued flow of Russian oil, but also allows Australian companies to profit from it," he noted.
According to government data, since January 2023, Australia has purchased almost a quarter of its imported oil products from Singapore.
According to an analysis of Kpler trade data conducted by Mark Corrigan, an Australian chemical engineer, and confirmed by Crea, this Southeast Asian country received more than 22 million tons of oil products from Russia during this period.
One-third of these volumes came from the Jurong Port Universal Terminal, which is partly owned by the Macquarie investment fund.
A Macquarie spokesperson stated that the controlling stake in the terminal is owned by the Singaporean state and is subject to applicable Singaporean and international regulations. A terminal spokesperson stated that the company uses robust procedures to ensure due diligence and fully complies with applicable laws and sanctions.
Neither of them disclosed what financial benefit Macquarie received from its investment in the terminal, nor did they provide assurances that the terminal did not sell Russian oil to Australia when asked, the publication writes.
Kateryna Argyrou, head of the Australian Federation of Ukrainian Organizations, called on Macquarie Bank to review its investments and disclose whether the terminal facilitated the transshipment of Russian oil.
"Australia cannot support Ukraine while Australian capital helps support Russia's war economy," Argyrou said.
"Every drop of Russian oil sold helps fund the destruction of Ukrainian homes and lives. Australians deserve to know if their banks and investment funds are profiting from this," she pointed out.
Companies operating in Australia have legally purchased oil from Indian enterprises that import large quantities of Russian fuel, as government officials previously confirmed. Corrigan's analysis showed that the same could be happening through Singapore.
The terminal, partly owned by Macquarie, sold oil to companies such as Trafigura, which received $135 million in government aid in August for its smelters in South Australia, and Vitol, the analysis showed.
Shell petrol station operator and Australian armed forces supplier, Viva Energy, buys oil from Vitol. Representatives of Vitol, Viva Energy and Trafigura stated that their companies operate in full compliance with all applicable laws and regulations, including sanctions.
They did not guarantee that they had not bought or sold oil products of Russian origin to Australian companies, consumers and government agencies when asked, the publication notes.
A Trafigura spokesperson stated that the company does not trade with sanctioned entities, and a Vitol spokesperson stated that the company adheres to a strict policy and strives for open and transparent relationships with authorities wherever it operates.
Australian Foreign Minister Penny Wong called on companies to ensure that their supply chains do not indirectly finance the Russian government.
She declined to commit to further restricting trade, saying it would be difficult for the government to track indirect purchases.
Australia is evaluating options to further pressure Russia's oil revenues, a spokesperson for the Australian Department of Foreign Affairs and Trade said.
Addition
The European Union and the United Kingdom announced sanctions in October against third-party processors of Russian raw materials from 2026, including by targeting specific terminals and refineries.