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Concerns banned Russian oil headed for Perth

Written by Allen Newton | Jul 29, 2025 8:30:00 AM

GREEK flagged oil tanker Seferis, believed to be carrying fuel refined from Russian crude, has docked at Kwinana, 40 kilometres south of Perth.

Concerns have been raised about sanction loopholes with Russia. The ship departed India, and contains oil from Jamnagar refinery, which processes Russian crude.

Ukrainian campaigners have flagged the possibility that the shipment includes Russian-origin oil indirectly routed through India. The oil onboard was refined in India’s Jamnagar refinery, which uses up to 55% Russian crude.

WA Police Minister Paul Papalia acknowledged publicly that the oil “could sneakily contain Russian crude,” but said it was a Commonwealth matter and outside WA’s jurisdiction.

A spokesperson for Foreign Minister Penny Wong said Australia lacks the necessary mechanisms to track and verify energy products sourced via third countries, such as India.

The spokesperson said ongoing efforts were being made to tighten enforcement and deny Russia access to Australian markets, while maintaining Australia’s support for Ukraine.

Independent MP Andrew Wilkie raised the issue in federal parliamentary question time, asking Defence Minister Richard Marles if two vessels that docked in Botany Bay this month, were carrying petrol refined from Russian crude via India.

Mr Marles responded by reaffirming Australia’s commitment to Ukraine and sanctions enforcement, but did not directly address the loophole concerns.

The Department of Foreign Affairs and Trade (DFAT) confirmed that Australia bans imports of oil originating in Russia, but oil refined in third countries, like India, is not covered by current sanctions.

This creates a legal grey zone allowing Russian-origin oil to enter Australia after transformation.

A DFAT guidance note from June this year confirms that refined products from Russian crude are not considered sanctioned imports if transformed abroad.

De minimis quantities, residual traces from transport containers, are also exempt.

The Australian Federation of Ukrainian Organisations (AFUO) and campaigners are urging a ban on refined products from Indian refineries using Russian crude and calling for closure of the “shadow fleet” loophole exploited by Russia to mask oil origins.

The Foreign Affairs Committee recommended improved tracking and autonomous sanctions on refined Russian oil. The government noted the recommendation but said tracking is currently not feasible without international cooperation.

WA Police Minister Paul Papalia acknowledged the oil “could sneakily contain Russian crude” but emphasized it’s a Commonwealth matter, not under state jurisdiction.

The diesel is reportedly destined for petrol bowsers across WA, meaning it could enter mainstream distribution without clear origin tracking.

Campaigners argue that Australian motorists, including those in WA, may be unwittingly funding Russia’s war machine through fuel purchases.

WA’s reliance on imported refined fuels — especially diesel for mining and transport — makes it vulnerable to these supply chain loopholes.