Fatima Payman (WA, Australia's Voice) Share this | Link to this | Hansard source

My question is to the Minister for Foreign Affairs, Senator Wong. Yesterday, it was reported that a tanker carrying fuel refined largely from Russian oil docked in Kwinana, in WA. While sanctions on Russian products exist, the fuel that has arrived in WA was reported to have been processed at the Jamnagar refinery in India. As we sit today, there are three stored oil tankers filled with products also tainted by laundered Russian oil, unable to ship to Europe because the EU has cracked down on the types of sanction evasions we're seeing happen right now in my home state. Western Australians need to be sure that, when they're pulling the trigger at the bowser, they aren't helping to pull triggers in Ukraine. What is the status of the fuel shipment, given the sanctions the government has placed on Russia?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

Through you, President: as Senator Payman would know, we have imposed strict sanctions and other trade measures to restrict the import purchase and transport of oil coming from, or that originated in, Russia. Last month I announced our first sanctions against Russia's shadow fleet to help starve Russia's war machine of revenue. As a result of the measures taken, direct Australian imports of Russian energy products have fallen from $80 million to zero since before Russia's invasion. There has been bipartisan support for that.

What Senator Payman references at a systemic level is what happens to energy products which enter via third countries. As I've said publicly, regrettably the mechanisms we would need to track and monitor all energy products via third countries are not in place in those countries. We'll continue to look at what options we can utilise to place further pressure on Russia's oil revenues. I think the senator referenced the European Union ban announced on 18 July, which will come into place in January 2026. I note the European Union has not yet issued any guidance about how that would in fact be implemented.

I would also say—and I think the senator referenced this—Australians do expect businesses to try and avoid their supply chains inadvertently funding Russia's illegal and immoral invasion of Ukraine. The government does call on businesses to uphold that responsibility. But the answer to the question is, firstly, we have sanctioned and we have increased those sanctions, including on the shadow fleet. Secondly, regrettably, there are not the mechanisms in third countries to enable all the issues you raise to be tracked.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Payman, first supplementary?

Fatima Payman (WA, Australia's Voice) Share this | Link to this | Hansard source

The Centre for Research on Energy and Clean Air found that 55 per cent of the crude used at India's Jamnagar refinery comes from Russia. Since the invasion of Ukraine, Australia has imported US$2.3 billion worth of fuel from these refineries, with an estimated $1.3 billion flowing straight back to Russia in taxes. Can the minister assure Australians that this money will not be contributing to the invasion of Ukraine?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I think, Senator Payman, you're asking me to make an assurance about Indian refinery revenue. We are not the government that has responsibility for what occurs in the refineries that you outline. I revert to my previous answer, which is, firstly, we have sanctioned Russia—and both parties of government have supported this. Secondly, we have expanded that to include the shadow fleet. Thirdly, we are looking at how we might further deal with the issue of importation from a third country, but, at this stage, the mechanisms for that to be tracked don't exist. Fourthly, I would encourage businesses to ensure that their supply chains reflect the position of the Australian community, which is obviously very supportive of Ukraine and very keen to ensure that there is no support flowing to Russia for their illegal and immoral war. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Payman, second supplementary?

Fatima Payman (WA, Australia's Voice) Share this | Link to this | Hansard source

Minister, you mentioned earlier the European Union. Will the government follow the EU's lead to close these loopholes that are available for third countries and send in Border Force to stop this fuel from reaching Australian bowsers?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

Certainly we welcome the progress that the European Union has made. As I'm advised, and as I indicated to you, Senator Payman, the announcement has been made. The start date of that announcement is actually January of next year. No guidance has yet been issued that I'm aware of about how it would be implemented. We certainly will be very keen to understand how the European Union seek to deal with the sorts of practical issues that I have described to you. We'll certainly be looking at that and engaging with them as they work through that process.