URGENT UPDATE: Australia’s largest superannuation funds are under fire for allegedly profiting from shipments of Russian oil, raising alarm that Australians’ retirement savings may be indirectly supporting Vladimir Putin’s war in Ukraine. Recent reports indicate that over 1 million tonnes of Russian oil products have been offloaded at a Malaysian shipping terminal co-owned by a consortium of Australian industry super funds.
As the war in Ukraine approaches its fifth year, dismantling Russia’s oil revenue streams has become a crucial priority for Western governments. The Albanese government is currently probing ways to tighten sanctions to prevent Russian oil from entering Australia, yet has faced criticism from the Ukrainian-Australian community for not matching the European Union’s and the UK’s recent bans on oil products refined from Russian crude.
According to the Centre for Research on Energy and Clean Air (CREA), Australian imports from Indian refineries using Russian crude more than doubled from September to October 2023. A coalition of 16 European Union and Ukrainian civil society organizations has urged Prime Minister Anthony Albanese to close loopholes that allow Russian-origin oil to enter Australian markets.
“Every litre of this blood oil undermines Australia’s sanctions and strengthens Russia’s war machine,” the coalition wrote in a letter to Albanese, highlighting the ethical ramifications of Australian funds allegedly benefiting from such trades.
Investigations reveal that IFM Investors, a Melbourne-based fund managing approximately $254 billion in assets, holds a significant stake in Vitol Tank Terminals International (VTTI). VTTI owns the ATB oil terminal in Johor, Malaysia, where the Russian oil is reportedly being processed. Data analysis from campaigner Mark Corrigan shows that since January 2023, about 1 million tonnes of Russian oil products have been processed at this terminal.
“We are extremely troubled that Australian superannuation funds are indirectly supporting Russia’s war,” said Kateryna Argyrou, chair of the Australian Federation of Ukrainian Organisations (AFUO). She emphasized that this situation raises serious ethical questions and undermines Australian sanctions against Russia.
In recent comments, Foreign Minister Penny Wong urged Australian businesses to ensure their supply chains do not inadvertently fund the ongoing conflict in Ukraine. “Australians expect their businesses to uphold ethical responsibilities in their operations,” Wong stated.
The latest developments are alarming: CREA estimates that Australia imported $3.8 billion worth of oil refined from Russian crude between February 2023 and June 2025, generating a staggering $2 billion in tax revenue for the Kremlin. This figure positions Australia as the world’s largest importer of Russian-origin fuel products, overshadowing the military and humanitarian aid provided to Ukraine since the onset of the war.
Polling conducted this month shows that 50% of Australians support the government taking a firm stance against fuel importers that engage in purchasing Russian oil, while only 10% oppose such measures. In a promising sign, Reliance Industries, which owns the world’s largest oil refinery, has announced plans to cease the use of Russian oil at its Jamnagar refinery by December 2023, a move that could significantly reduce Russian oil imports into Australia.
As authorities continue to investigate the flow of Russian oil products through Malaysia and Singapore, the Australian government is evaluating options to further restrict Russian oil revenue. A spokesperson from the Department of Foreign Affairs and Trade confirmed, “The government has imposed strict sanctions to limit the importation of Russian energy products.”
This situation remains fluid, and the implications for both Australian investors and the broader geopolitical landscape are profound. As the scrutiny intensifies, all eyes will be on how the Albanese government addresses these serious concerns.
Stay tuned for further updates as this story develops.
