Product Tanker Causes Protest in Australia as it Likely has Russian Oil

The issue of intermediaries in the oil supply chain surfaced in Australia this week as a tanker arrived from India, likely with Russian oil. It is leading to calls to close loopholes in the sanctions, which so far have focused on direct Russia trade but have not extended to products made from Russian crude in intermediary countries.

The European Union recently focused on this same issue, imposing sanctions on a refinery in India in which Russia’s Rosneft is an investor. Donald Trump also continues to threaten secondary sanctions on the buyers of Russian oil, including India, unless Russia moves forward with peace talks and a ceasefire in Ukraine.

The issue emerged in Australia as the Greek-owned tanker Seferis (113,839 dwt) approached Western Australia. The vessel is reported to have departed India’s Jamnagar refinery on July 11, loaded with gasoline likely refined from Russian stock.

Protestors called for the vessel to be turned away, but it was pointed out that the vessel was not in violation of the sanctions. It provided legitimate documentation that it had been loaded in India, and even the critics had to admit it is nearly impossible to determine the source of the stock. The vessel docked at Kwinana terminal, approximately 25 miles south of Perth, early on Wednesday, July 30, to offload.

Australia has imposed broad sanctions on Russia since the start of the war in Ukraine. For the first time, it also recently imposed sanctions on shadow fleet tankers.

The protestors pounced on reports that nearly half of the feedstock going into Jamnagar is coming from Russia. Calling the fuel “blood money,” they said Australia must move immediately to stop these imports.

Australia, according to data from the Centre for Research on Energy and Clean Air, imported approximately US$650 million of oil products from India in the first four months of 2025. Most of it was likely made from Russian stock. About 90 percent of Australia’s imports from India come from the Jamnagar refinery.

Western Australia’s Defense Industries Minister, Paul Papalia, speaking to the media on Tuesday, highlighted the prospect of “Russia getting around sanctions and getting its oil to market… by sneaky means.”

There are indications that the pressure building on intermediaries may be working. Reuters is reporting that India’s state refineries have all suspended purchases of Russian oil this week. They are said to be scrambling to find alternative sources, primarily in the Middle East. However, the report notes that the state refineries are not the largest buyers, which remain the private companies in India, including Reliance Industries and Nayara Energy.

After the EU sanctions against Nayara, there have been multiple reports of tankers diverting. Reuters reports that companies are demanding that their contracts be canceled due to the sanctions.