Dozens of oil tankers in Russia’s shadow fleet are set to face a fresh round of Australian sanctions. This move aims to cut off revenue streams for Vladimir Putin’s war efforts as Australia announces its first military support package for Ukraine in over a year. The sanctions will target vessels designed to evade international restrictions, a strategy that has been in place since Russia’s full-scale invasion of Ukraine.
The new measures, however, fall short of growing demands for Australia to join the European Union and the United Kingdom in banning the import of Russian-origin oil through intermediary nations. A leading sanctions law expert criticized Australia’s efforts as “weak and slow,” urging for more robust policies to prevent inadvertently funding the Kremlin.
Military Support Package for Ukraine
On Thursday, the Australian government will announce a $95 million military assistance package for Ukraine. This includes the country’s first contribution to the Prioritised Ukraine Requirements List (PURL), a NATO-administered initiative to supply critical U.S. military equipment to Ukraine. Additionally, Australia will provide $45 million in equipment such as tactical air defense radars, munitions, and combat engineering tools from its defense stockpile, along with $2 million to aid Ukraine with drone technology.
Discussions are also underway with Ukraine regarding the provision of retiring Tiger attack helicopters to bolster its defense capabilities. “Australia is unwavering in its support for Ukraine,” stated Defence Minister Richard Marles. “These commitments will make a tangible difference in Ukraine’s defense against Russia’s illegal and immoral invasion.”
Impact of Sanctions on Russia’s Shadow Fleet
The sanctions will impact 45 vessels within Russia’s shadow fleet, which have been instrumental in circumventing international sanctions. Analysis by the Centre for Research on Energy and Clean Air (CREA) revealed that these “shadow” tankers, employing false flags and other clandestine methods, account for 62 percent of shipped Russian crude oil exports. The Australian government previously sanctioned 60 such vessels in June.
Anton Moiseienko, a senior lecturer at the Australian National University, expressed concerns over Australia’s lackluster approach to sanctions against Russia. “Australia is a major global market for refined petroleum originating in Russian crude oil,” Moiseienko noted in his submission to a parliamentary inquiry. “The Australian response has been weak, slow, and not commensurate to Australia’s position as a major global market for Russian oil.”
“Australians have paid at least $3.8 billion for petrol and diesel produced from Russian crude oil since February 2023,” according to CREA analysis.
Calls for Stronger Measures
Moiseienko, an author of two books on sanctions policy, advocates for legislation to ban purchases of refined oil products originating from Russian crude oil, aligning with EU and UK measures. He argues that while sanctions on Russia’s shadow fleet serve to “name and shame” involved vessels, they are unlikely to have substantial effects as these vessels do not depend on access to Australian ports.
Foreign Minister Penny Wong emphasized that Australia’s sanctions are designed to complement those of key partners, including the United Kingdom, United States, New Zealand, and the European Union, as part of a coordinated effort to cut off Russia’s oil revenues and limit its ability to finance its invasion.
This development follows Australia’s recent donation of 49 M1A1 Abrams tanks to Ukraine, with the final tranche expected to be delivered in the coming weeks. The ongoing conflict and international response continue to evolve, with Australia playing a significant role in the global effort to support Ukraine and curb Russian aggression.
