Australia's Rising Dependence on Russian-Origin Oil Sparks Sanctions Debate

September 22, 2026
Australia's Rising Dependence on Russian-Origin Oil Sparks Sanctions Debate
  • A CREA analysis shows that 68% of oil exported from Brunei's Hengyi refinery to Australia in the first seven months of 2026 was Russian-origin, a sharp rise from 24% two years earlier.

  • Officials stress maintaining fuel supplies while tightening sanctions, with ongoing talks among allies to close loopholes that let Russian oil enter the market.

  • Ukrainian-Australian groups and CREA are pressing for a full ban on petroleum products derived from Russian crude.

  • The coverage places the issue in the wider debate over 'blood oil' and sanctions effectiveness, including industry and political responses and related inquiries.

  • The report uses specific figures and timelines—for example, a 68% share, 2.6 million tonnes, and the first seven months of 2026—to illustrate trends.

  • Australia bans direct imports of Russian oil, but a loophole allows Russian crude refined in third countries to enter as refined products.

  • DFAT says it has imposed sanctions and is evaluating further steps to curb oil from Russia and safeguard supply chains from funding Moscow’s war.

  • The issue is tied to upcoming events, including a meeting between Prime Minister Albanese and Zelensky at the UN General Assembly and a pledged security pact.

  • Australia has imported about 2.6 million tonnes of Russian-origin oil from Hengyi since the Ukraine war began, predominantly as diesel.

  • Hengyi accounts for a large share of Australia-bound oil products, representing about 43% of Hengyi’s export volume.

  • Hengyi’s Russian crude share surged, reaching 88% between April and June 2026, after rising from 5% in 2022 to 37% in 2023.

  • Overall, Hengyi’s Russian crude share climbed from 37% in 2023 to 72% in the first seven months of 2026.

Summary based on 1 source


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Funding Putin: ‘Blood oil’ imports from major Asian supplier surge

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