Australia’s Viva Energy has joined the growing number of companies turning its back on Russian crude in the wake of its invasion of Ukraine.
The company said it was “appalled by events” unfolding in the Ukraine and “extended its sympathies to the innocent people affected by this terrible conflict”.
In response, Viva Energy said it had made the decision to cease purchases of crude oil of Russian origin while the conflict continues.
“Viva Energy sources crude from many different countries and expects to be able to maintain supplies of crude oil and fuel to support Australia’s energy security during these difficult and uncertain times. We are keeping the Australian government informed of the evolving situation,” the company said.
Viva Energy said two Russian-origin crude cargoes were purchased prior to the conflict and are due to arrive in Australia over the next two months.
“We have explored options to dispose of these cargoes, but there are no credible purchasers in the current market and without these supplies the company faces gaps in its refining program and potential fuel shortages. These cargoes have been purchased from international oil companies, rather than from Russian entities,” it said.
While Viva Energy operates in Australia under the Shell brand, all of its crude oil and fuel is purchased from Vitol, the world’s largest independent trader of energy based in Singapore.
Meanwhile, fuel giant Ampol on Tuesday also condemned Russia’s actions in Ukraine and confirmed it had not purchased Russian crude oil or other fuel products since the onset of the conflict.
However, it had also previously purchased two Russian cargoes prior to the invasion that were due to discharge by the end of April.
Russia accounts for up to 11% of the world’s crude oil production, but Australia only imported 1.5% of its total crude oil and other refinery feedstock from Russia in 2021.
Ampol said geopolitical events in Ukraine and the sanctions on Russia were putting pressure on global oil prices and impacting Australian fuel prices.
“We will continue to focus on delivering products safely and reliably to our customers using the strong existing supply chains we have in place,” it said.
Australian energy Minister Angus Taylor last week said the global oil market was showing “signs of uncertainty” in response to Russia’s invasion of Ukraine.
He said Australia would work with international partners to build confidence in the market and stabilise prices, including by releasing oil stocks held on Australia’s behalf in the US Strategic Petroleum Reserve.
