Australian motorists could be inadvertently fuelling Russia's war on Ukraine after a loophole allowed tankers believed to be carrying Russian oil to arrive in the country.
Alarm bells sounded in July when Seferis, a 250-metre ship sailing under a Greek flag, docked at a BP terminal in Kwinana, south of Perth, after departing from India.
Activists claim it was laden with fuel derived from Russian crude oil that was processed in India but the oil giant maintains the load was fully compliant with Australian rules.
Australia has imposed more than 1500 sanctions on Russia in response to its invasion of Ukraine in 2022, including measures to restrict the import, purchase and transport of the nation's oil.
Other nations including India, however, have resisted punishing Vladimir Putin's regime.
Australia has imported billions of dollars in Russian crude oil laundered through Indian refineries, Ukrainian activists say.
The issue was first raised in parliament in July when independent MP Andrew Wilkie queried Defence Minister Richard Marles on why "our loopholes are so big you can drive a tanker through them".
He said about 90,000 tonnes of petrol that also docked in Sydney in July from India's Jamnagar refinery were largely Russian-sourced.
Although the oil is made in the refinery, Jamnagar uses up to 55 per cent of Russian oil in the process, Mr Wilkie said.
Independent WA senator Fatima Payman on Thursday raised claims three tankers containing tainted Russian oil are sitting on WA's docks, unable to ship to Europe because of a crackdown on sanction evasion.
The federal government in June announced sanctions against Russia's "shadow fleet", imposing a $60 price cap per barrel to restrict the import of Russian crude oil.
It also enables authorities to prevent these vessels entering Australian waters.
Foreign Minister Penny Wong said the government was looking at ways to further deal with imports from third countries.
"Regrettably, the mechanisms we would need to track and monitor all energy products via third countries are not in place in those countries," she said.
"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."
The foreign minister said Australians expect businesses to try to avoid their supply chains inadvertently funding Russia's invasion, signalling further pressure on Russian oil revenues.
Ukrainian Association of WA activist Roma Popadynec, whose relatives have been caught up in the conflict, said Australia needs to close these loopholes, fearing they funded Kremlin's war efforts.
Australian National University academic Anton Moiseienko, a specialist in financial crimes and sanctions, said it was a political minefield for governments to balance limiting Russia's oil money-maker while avoiding overall price increases.
"If prices rose, then Russia could sell less and make more money," he said.
Director of the University of Queensland's Gas and Energy Transition Research Centre David Close said voters support embargoes and sanctions to a point but they don't want the global economy to crater.
