Australia’s commitment to supporting Ukraine with a substantial $1.5 billion (US$953 million) aid package is overshadowed by a startling revelation: the country has indirectly funneled significantly more money to Russia through fuel imports.

A recent analysis by the Centre for Research on Energy and Clean Air (CREA) exposes this unintended consequence. The report highlights that Australia has imported over $3.7 billion worth of fuel refined from Russian crude oil. This oil is processed in countries like India and Turkey, which continue to purchase Russian crude despite international sanctions, creating a loophole in the system.

The refined fuel is then legally imported into Australia, ultimately contributing an estimated $1.8 billion in tax revenue to the Russian government. This figure significantly surpasses the aid sent to Ukraine, raising concerns about the effectiveness of current sanctions.

Vaibhav Raghunandan, CREA’s EU-Russia analyst, points to this situation as a “significant failing of Western sanctions,” emphasizing the need for more robust measures to prevent such indirect funding of Russia’s war efforts. The findings underscore the complex and often unintended consequences of international sanctions, prompting a critical examination of global trade routes and their impact on geopolitical conflicts.