Shadow Assistant Minister for Foreign Affairs and Trade Dean Smith has urged the Albanese Government to follow Europe’s lead and sanction Indian oil refineries allegedly processing Russian crude, saying Australia’s current measures are “missing the point.”
Speaking on ABC Radio’s Drive program on 8 October 2025, Senator Smith said that while the government had strengthened sanctions against Russia — including targeting 95 “Russian shadow fleet” vessels in September — Australia was not doing enough to address the indirect flow of Russian oil revenue. “I think the government’s approach misses the point,” Senator Smith said.
“Why is it that Australia is not actually doing what the Europeans are doing — an that is sanctioning the refinery itself? There could be a good or interesting reason for this, but it’s not immediately obvious to me.”
When radio host Gary Adshead pressed the issue further, he asked whether the Australian Government had ever considered sanctioning refineries directly — similar to the approach taken by the United States, which has introduced tariffs and other measures to curb the flow of Russian oil through third countries.
“Has that been considered within government at all — the sanctioning of the refineries, like the U.S. has now done, through tariffs and other methods to try and stop this flow of Russian oil?”
Resources Minister Madeleine King, who was also part of the discussion, appeared momentarily uncertain about the target of Smith’s proposed sanctions.
“Well, I’m not sure if Dean’s suggesting we sanction BP’s refinery — or do you mean the ones in India?” she asked.
Senator Smith quickly clarified his position:
“No, no, no — the refineries in India.”
Smith also said he would raise the issue with the Department of Foreign Affairs and Trade (DFAT) and the Department of Defence later this week, when Foreign Minister Penny Wong appears before the Senate.
“I suspect the answer is that the government sanction regime is hitting the wrong target.”
Responding to questions from The Australia Today about the government’s position, a spokesperson for the Foreign Minister said Australia had already imposed over 1,500 sanctions in response to Russia’s invasion of Ukraine.
“This includes strict sanctions and other trade measures to restrict the import, purchase and transport of oil coming from, or that originated in, Russia,” the spokesperson said.
“As a result, direct Australian imports of Russian energy products have fallen from $80 million to zero since 2021.”
The spokesperson added that Australia’s sanctions on Russia’s shadow fleet were designed to cut off Moscow’s oil revenue and prevent sanctioned vessels from entering Australian waters. However, they acknowledged that tracking and monitoring refined oil products through third countries remains a major challenge, as those mechanisms “are not in place in those countries.”
“We remain steadfast in our support for a comprehensive, just and lasting peace for Ukraine,” the spokesperson said.
“Australia will continue taking action to deny Russia access to our markets and ensure we do not inadvertently fund Russia’s war machine.”
The discussion comes as Indian refiners are expected to increase oil imports from Russia in the coming months, with Urals crude trading at a discount of $2–$2.50 per barrel compared to Brent. According to ship-tracking firm Kpler Ltd., India’s Russian crude imports could reach 1.7 million barrels a day in October, up six per cent from last month.
The United States recently imposed a 50 per cent tariff on Indian goods to pressure New Delhi to curb its purchases of Russian oil — though Washington has refrained from taking similar measures against China.
It is important to note here that in 2024, European imports of Russian LNG rose to record levels despite the ongoing war, while oil imports also continued, albeit at reduced levels. The EU’s total trade in goods with Russia still exceeded €67.5 billion — roughly on par with India’s trade with Moscow, which is largely driven by oil. Against this backdrop, any Western criticism or calls for sanctions against India or Indian entities appear increasingly inconsistent.
Meanwhile, Foreign Minister Penny Wong has been engaging closely with Indian leaders, meeting with her counterpart Dr S. Jaishankar last month and with Defence Minister Rajnath Singh this week.
“Australia and India are joint custodians of the Indian Ocean,” Senator Wong said after meeting Singh.
“We share a region and we share a future.”
In her talks with Dr Jaishankar, Wong reaffirmed the “strong ties of history and community” between the two nations, adding,
“Australia’s Indian diaspora makes a rich contribution to our national story.”
Despite ongoing trade tensions with Washington, U.S. Trade Representative Jamieson Greer has taken a softer tone, acknowledging that Russian oil imports are “not a bedrock of India’s economy” and praising India’s “pragmatic” efforts to diversify energy sources.
UK Prime Minister Keir Starmer also concluded his two-day visit to India on October 9, 2025. During his visit, he met with Indian Prime Minister Narendra Modi in Mumbai to discuss strengthening trade, technology, and defense ties under the recently signed India–UK Comprehensive Economic and Trade Agreement (CETA). The visit included a 125-member UK business delegation and led to announcements such as a £350 million defense deal and plans for UK universities to open campuses in India.
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