Russian Oil Reached Australia Via Brunei Refinery
The Brunei-based Hengyi refinery exported 2.6 million tonnes of Russian-origin oil to Australia since 2022.
Updated on Sept. 22, 2026 in Oil and Gas
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Australian imports from the Brunei Hengyi refinery contained 68 percent Russian-derived oil during the first seven months of 2026. This practice persists despite Australia having banned direct imports of Russian oil following the invasion of Ukraine.
Why it matters
These imports emerged as a result of government efforts to secure fuel supplies amidst global shortages. The Department of Foreign Affairs and Trade has warned that importers could potentially breach sanctions if products are not substantially transformed.
Australia imported 2.6 million tonnes of Russian-origin oil through the refinery since 2022, with the Russian crude share peaking at 88 percent between April and June 2026.
The players
Anthony Albanese
He is the current Prime Minister of Australia.
Volodymyr Zelensky
He is the current President of Ukraine.
Donald Trump
He is the current President of the United States.
Department of Foreign Affairs and Trade
This is the Australian government agency responsible for foreign policy and trade sanctions guidance.
Hengyi
This entity operates a major refinery based in Brunei that serves as a key supplier for Australian fuel markets.
The details
The Russian crude is processed into diesel and other products in third countries before entering the Australian market. This supply chain has become a significant focal point as Australia seeks to maintain energy security while adhering to its international commitments regarding Russian trade.
Timeline
Australia has imported Russian-origin oil since the start of the war in 2022.
The Russian crude share of Hengyi exports reached 88 percent from April to June 2026.
A final report on the subject was released by a Senate inquiry in August 2026.
President Donald Trump signed a tariff bill in September 2026.
Anthony Albanese and Volodymyr Zelensky are expected to sign a security pact this Wednesday.
Market Landscape
This dependency on refined products from third-country refineries illustrates the limitations of direct sanctions in a globalized energy market. The pattern follows a trend where nations attempt to secure fuel supplies while navigating complex supply chains that often bypass trade restrictions.
The reliance on these supply chains impacts the domestic fuel market by helping to stabilize diesel and petroleum availability for Australian consumers. However, ongoing policy changes, such as the potential for new tariffs, could lead to volatility in future energy import costs.
The takeaway
Navigating energy security often involves complex global trade networks that can complicate the enforcement of international sanctions. Readers should be aware that global fuel supplies are frequently linked to third-party refining processes that obscure the original source of the crude oil.
What happens next
Anthony Albanese and Volodymyr Zelensky are scheduled to sign a security pact at the United Nations General Assembly this Wednesday.
Further reading
For more information on market supply chains, visit our Oil and Gas section.
Source note: This article includes information reported by Brisbane Times.
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