Russian oil has flowed into New Zealand despite sanctions

Millions of dollars’ worth of Russian oil has flowed into New Zealand – despite sanctions over the war in Ukraine, 1News can reveal.

A “refining loophole” allows Russian crude to be shipped to countries such as India, processed into petrol, diesel and jet fuel, and then sold on to New Zealand companies.

Analysis carried out for 1News by the Centre for Research on Energy and Clean Air (CREA) shows nearly $100 million worth of fuel refined from Russian crude arrived here in the past year.

CREA estimated those imports generated roughly $70 million in tax revenue for the Kremlin.

While the shipments did not breach New Zealand’s ban on Russian oil – because refined fuels were not legally considered Russian – experts warned the loophole undermined global efforts to curb one of Moscow’s most important revenue streams.

New Zealand is among dozens of Western countries that have banned Russian oil and signed up to a global price cap on Russian crude.

Shipping data shows that since New Zealand joined the price cap in February 2024, three tankers carrying nearly 200,000 tonnes of fuel have arrived at Marsden Point from India’s Jamnagar refinery – the largest refining complex in the world.

The shipments arrived in December 2024, and in February and April 2025.

Jamnagar has become one of the biggest buyers of Russian oil since the start of the war in Ukraine, with imports reaching as high as 55% this year.

The refinery blends Russian crude with oil from other countries, and CREA estimates around 75,000 tonnes of the fuel imported to New Zealand – worth nearly $100 million – was produced using Russian crude.

“That’s benefitting the Kremlin in terms of their exports of Russian crude oil,” Isaac Levi, CREA Europe-Russia Policy and Energy Analysis team lead, told 1News.

“That’s tens of millions of New Zealand dollars flowing back to the Kremlin in tax revenue used to finance their illegal invasion of Ukraine.”

After questions from 1News, Z Energy confirmed it was the buyer of the fuel shipped from India.

A spokesperson said in a statement: “Z complies with all applicable laws and sanctions across our operations and supply chains, including in relation to these three shipments.”

The Australian-owned company said it sourced refined fuel products from a range of international suppliers and remained “deeply concerned” about the ongoing situation in Ukraine.

The Ministry for Foreign Affairs and Trade (MFAT) said shipments from refining countries such as India were not prohibited under current rules.

Mobil and BP said they have not imported fuel products from Jamnagar to New Zealand.

University of Waikato international law professor, Alexander Gillespie, told 1News the shipments raised serious questions about whether New Zealand’s sanctions regime was working as intended.

“The law is clear – the regulations are specific,” he said. “You must not directly or indirectly import Russian oil. And so, if this is the law, it must be adhered to.”

“We need an investigation into what was known and what was not known.”

The UK and EU have already moved to close the loophole by banning the import of refined Russian oil products from countries such as India. Meanwhile, the Trump administration has imposed higher tariffs on India because of its continued purchase of Russian crude.

Both Levi and Gillespie urged the New Zealand Government to consider tightening sanctions.

“New Zealand needs to be consistent and coordinated with Europe and America. We should not be out of step with our friends and allies on this,” Gillespie said.

MFAT told 1News it was “closely following” developments in the UK and EU.

“[We] welcome ongoing efforts to exert economic pressure on Russia, including in targeting Russia’s revenue from its oil exports,” a spokesperson said.

Ukraine’s ambassador to New Zealand, Vasyl Myroshnychenko, said the findings posed a moral quandary for the country.

“How moral is it to be buying Russian oil that's used to produce weapons that are used to kill Ukrainians? That’s the question that I’m asking,” he told 1News.

He said he looked forward to working with the Government on ways to ensure New Zealand companies were not “procuring Russian petrol and diesel.”

Asked whether officials were considering a ban on imports from refineries such as Jamnagar, Foreign Minister, Winston Peters, said he was “onto it".

“We're having an in-house inquiry. I'll let you know when we've done the work,” he said.

Last month, Peters sanctioned 65 so-called "shadow fleet" vessels involved in shipping Russian oil.

Since the Russia Sanctions Act came into force in March 2022, New Zealand has imposed sanctions on more than 1900 individuals, entities, and vessels, as well as several trade measures.