Dozens of oil tankers in Russia’s shadow fleet are set to face a fresh round of Australian sanctions as the federal government aims to cut off revenue streams to Vladimir Putin’s war efforts. This announcement coincides with Australia’s first military support package for Ukraine in over a year.
Despite these measures, there are increasing calls for Australia to take a firmer stance by joining the European Union and United Kingdom in banning the import of Russian-origin oil through intermediary countries. A prominent sanctions law expert has criticized the current efforts as “weak and slow,” urging for more robust policies to prevent inadvertently funding the Kremlin.
Military Support and Sanctions Details
On Thursday, the government will unveil a $95 million military assistance package for Ukraine, marking its first contribution to the Prioritised Ukraine Requirements List (PURL). This NATO-administered initiative aims to fund and deliver critical US military equipment to Ukraine. Additionally, Australia will provide $45 million worth of equipment, including tactical air defense radars, munitions, and combat engineering gear, along with $2 million to enhance Ukraine’s drone capabilities.
This development follows discussions between Australia and Ukraine regarding the potential provision of retiring Tiger attack helicopters to aid Ukraine’s defense efforts. “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 new sanctions target 45 vessels within Russia’s shadow fleet, which have been designed to circumvent international sanctions imposed after the full-scale invasion of Ukraine. While these actions are welcomed by the Ukrainian-Australian community, their practical effects may be limited. The Centre for Research on Energy and Clean Air (CREA) reports that these “shadow” tankers, using false flags and other clandestine methods, account for 62 percent of shipped Russian crude oil exports.
A previous sanction round in June targeted 60 “shadow fleet” vessels.
Anton Moiseienko, a senior lecturer at the Australian National University, criticized Australia’s approach to sanctions as lacking “vigour and ambition.” He noted in a parliamentary inquiry that Australia is a significant global market for refined petroleum derived from Russian crude oil.
Calls for Stronger Measures
Moiseienko, who has authored two books on sanctions policy, urged the government to legislate a ban on refined oil products originating from Russian crude oil, aligning with the EU and UK. He also advocated for sanctioning entire networks involved in the Russian oil trade. “Sanctions on Russia’s shadow fleet are useful for ‘naming and shaming’ the vessels involved but are unlikely to have substantial practical effects,” he argued, as these vessels do not depend on access to Australian ports.
Foreign Minister Penny Wong emphasized that Australia’s sanctions 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 invasion financing capabilities.
Economic Implications
This masthead’s “blood oil” series has underscored the significant quantities of Russian-origin oil entering Australia, primarily from Indian refineries. Australians have spent at least $3.8 billion on petrol and diesel produced from Russian crude oil since February 2023, according to CREA analysis.
The announcement comes as Australia’s most recent support package, which included a donation of 49 M1A1 Abrams tanks, is set to be fully delivered to Ukraine in the coming weeks. As the global community continues to grapple with the geopolitical ramifications of the Ukraine conflict, Australia’s actions highlight the ongoing challenges and debates surrounding international sanctions and military support.
