Australia stopped buying oil directly from Russia after the start of the military operation in Ukraine, but as of 2023, it imported more than 3 million tons of oil of Russian origin through a loophole.
The sanctions in place in Australia allow purchases through third countries. As of January 2023, Australia sources almost a quarter of its imported refined oil from Singapore. According to an analysis of Kpler’s trade data, during this period, the Southeast Asian country imported more than 22 million tons of petroleum products from Russia. A third of these volumes went to the terminal in Singapore’s Jurong port, which is partly owned by the Macquarie investment fund. A representative of Macquarie said that the terminal is owned by a Singaporean state-owned company and complies with current Singaporean and international rules. At the end of October, US Treasury Secretary Scott Bessent negotiated with Singaporean Prime Minister Lawrence Wong about stopping the supply of Russian and Iranian oil.
US President Donald Trump has repeatedly criticised other countries for buying Russian energy sources. In July, the European Union agreed to stop buying Russian oil and gas altogether by 2027 and replace them with more expensive American products as part of an agreement with the United States to reduce tariffs from 30 percent to 15 percent. According to the agreement, Europe will buy energy worth 750 billion dollars from the United States within three years. The EU’s 19th package of sanctions against Russia includes the cessation of Russian gas imports and the reduction of the oil price cap. In October, the US imposed sanctions on Rosneft, Lukoil and their subsidiaries. The U.S. Treasury Department has given a one-month deadline to halt transactions with companies subject to restrictions.
The case of Australia also shows that solidarity and compassion are very important, but there is one more important thing, and that is money. And if Russian oil is cheaper than the others, it is difficult to give it up.
Translated and edited by Alex Kada