The committee recommends that the Australian Government improve tracking of petroleum‐based products made with refined Russian oil, and apply autonomous sanctions as required in order to prevent the sale of Russian oil and petroleum products in Australia.

Government Response to Recommendation 8

The Government notes this recommendation.

Following Russia’s full-scale invasion of Ukraine, the Government has implemented trade sanctions on Russian energy exports, including bans on the import to Australia of Russian oil, refined petroleum, coal and gas. The Government has also imposed targeted financial sanctions on key persons and entities in Russia’s energy sector. Australia’s imports of Russian crude and refined petroleum products from Russia have now ceased, having fallen from $75 million in 2021 (pre imposition of trade sanctions).

The Government cannot independently track liquid fuel movements nor confirm the origin of these products once they have been substantially transformed in a third country. Import bans on Russian oil imposed by Australia’s international partners, including the United Kingdom and the United States, similarly do not target substantially transformed products. Such a tracking mechanism would require agreement from the countries and companies involved in global liquid fuel trade. We continue to engage international partners on this issue.