Self-sanctioning of Russian goods and services is growing in Australia with two key examples revealed on Tuesday.
Australian refiners Ampol and Viva Energy say they will stop using Russian crude oil in their plants at Geelong (Viva) and Brisbane (Ampol) once four cargoes of Russian oil arrive.
The companies are the country’s two last refiners and revealed their plans in separate statements on Tuesday.
The two announcements amount to self-imposed sanctions by Ampol and Viva – which is 45% owned by Vitol, one of the world’s biggest oil traders, even though its parent hasn’t said anything officially
Ampol said it had not purchased Russian oil or products since the conflict in Ukraine began.
The company has two Russian cargoes in its supply chain, purchased before the invasion (which will arrive by the end of April), but said the Australian energy market was not reliant on Russian oil.
“Our refinery at Lytton uses crude oil sourced from south-east Asia, Africa, North America and the Middle East. Product supply chains in Australia also typically operate without any Russian oil products,” Ampol said in its statement.
Viva said in its statement on Tuesday that the ban will start once its latest order arrives.
Viva’s oil supplies are organised by Vitol through the giant’s Singapore trading hub.
Viva runs the Geelong oil refinery and the nationwide network of Shell and Liberty-branded petrol stations.
It said in Tuesday’s statement that it was “appalled by the events unfolding in Ukraine” and extended its sympathies to those affected by the conflict.
“As a consequence and in response, Viva Energy has made the decision to cease purchases of crude oil of Russian origin,” the company said.
Viva confirmed it had been exploring options to dispose of two Russian-origin crude cargoes purchased prior to the conflict, due to arrive in Australia over the next two months, but had been unable to find credible buyers.
“Without these supplies, the company faces gaps in its refining program and potential fuel shortages,” it said.
The company said it sourced crude oil (though Vito’s worldwide network) and expects to be able to maintain supplies to support Australia’s energy security.
“We are keeping the Australian government informed of the evolving situation,” it said.
Shell has no involvement or connection with Viva Energy’s crude oil and fuel supply.
Ampol did point out in its statement something that applies to Viva as well:
“…geopolitical events in the Ukraine and current international sanctions are putting pressure on global oil prices and this is in turn impacting Australian retail fuel prices.”
That will put unleaded prices above $US2 a litre.
Viva shares fell 4.1% to $2.31 and Ampol shares also fell 4.1% to $28.27.
