The B4Ukraine Coalition has urged Australian Prime Minister Anthony Albanese to commit to banning imports of petroleum products refined from Russian crude oil, calling for legislation to close a loophole that allows Russian oil to enter the Australian market through third countries.
In a letter sent to the Prime Minister on 3 November, the coalition called on the Australian Government to act on the findings of the Senate Foreign Affairs, Defence and Trade References Committee, whose August 2026 report highlighted shortcomings in Australia's sanctions regime and recommended stronger enforcement and action to close sanctions loopholes.
Two months after the report's publication, and 12 months after B4Ukraine first called for action, the Government has yet to outline concrete steps to address the issue.
The consequences of continued inaction are significant. Australia is estimated to have paid nearly €300 million for fuel made from Russian crude oil in the first seven months of 2026, as Russia intensified its attacks on Ukrainian civilians and critical infrastructure.
Since Russia launched its full-scale invasion in February 2022, Australian imports of refined petroleum products made, in part, from Russian crude oil have reportedly totalled AUD 16.5 billion. Estimates by the Centre for Research on Energy and Clean Air (CREA) suggest these imports may have generated up to $1.7 billion in tax revenue for the Russian state budget over the same period.
Recent reporting by The Sydney Morning Herald further illustrates the scale of the problem. Russian crude accounted for an estimated 68% of the oil processed at Brunei's Hengyi refinery and exported to Australia in the first seven months of 2026, up from 24% over the same period in 2024.
Australia is not alone in addressing this loophole. The European Union prohibited imports of refined petroleum products made from Russian crude in third countries from 21 January 2026, followed by the United Kingdom on 20 May 2026.
Early figures indicate that these restrictions are having a measurable impact. Between 21 January and 31 August, the value of EU imports of oil products from refineries processing Russian crude fell by 62% year on year, from €6.3 billion in 2025 to €2.4 billion in 2026. The estimated value of products specifically attributed to Russian crude fell by 79%, from €3.4 billion to €733 million.
B4Ukraine is calling on Australia to introduce an equivalent refinery-level ban, supported by clear rules for tracing crude oil origins and effective enforcement mechanisms. The coalition recommends prohibiting imports of oil products from any port or refinery that has received Russian crude oil or oil products within the preceding six months. This would help prevent Russian oil products from reaching Australia through re-export, blending or further processing.
The coalition also welcomed recent remarks by Climate Change and Energy Minister Chris Bowen, reported by The Sydney Morning Herald, that Australia does not need or want Russian fuel and that Russia should not be rewarded for its illegal invasion of Ukraine.
B4Ukraine is urging the Albanese Government to:
- Publicly commit to banning imports of refined petroleum products made from Russian crude oil.
- Introduce legislation without further delay to establish an effective refinery-level prohibition.
- Set out a clear implementation timetable, including measures to ensure traceability, compliance and enforcement.
Australia has provided substantial support to Ukraine since Russia's full-scale invasion. Closing the refining loophole would help ensure that Australian fuel imports do not continue generating revenue for the Russian state while Australia supports Ukraine's defence of its sovereignty and territorial integrity.