Australia has no need to buy fuel from Russia, despite US President Donald Trump’s move to bring Russian diesel back to world markets. Climate Change and Energy Minister Chris Bowen says that imports from Russia will remain banned to ensure the country does not benefit from its invasion of Ukraine, Bloomberg reports.
Trump has agreed with Russia's President Vladimir Putin to release Russian diesel onto global markets, a move Ukraine says funds a war that has killed more than 80 Ukrainian civilians in two days.
“We don’t need or want Russian fuel in Australia. We do not want Vladimir Putin to benefit from this war in the Middle East. What the United States does is a matter for them, but we won’t be changing our approach,” Bowen said.
The deal Australia is turning down
Trump announced on 9 October a series of cargoes beginning this month totaling about 13.5 million barrels of Russian diesel. The release upends years of sanctions, as the White House looks for ways to tame soaring fuel prices before the US midterm elections.
Bowen draws a clear line between that approach and Australia’s. What the US does is its own affair, he stresses, but Canberra will maintain its arrangements with trading partners to keep Russian fuel out of the market.
Enough fuel to hold the line
Australia can hold out without Russian supply, Bowen argues. The country has 43 days’ worth of petrol, two days more than a week earlier, and 31 days’ worth of diesel, one day less, he notes.
He adds that Australia stays in close contact with domestic refiners to keep them running at full capacity. The stance lets Canberra wait out high prices rather than buy fuel that would send money to Moscow.
Australia’s fuel costs have stayed high since the war between the US and Iran disrupted shipping through the Strait of Hormuz, the route that normally carries about a fifth of the world’s oil and gas.
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