Z Energy won’t say if more shipments of refined Russian fuel en route to NZ
Friday, 28 November 2025
Z Energy is refusing to say whether it has more shipments of fuel en route to New Zealand that are likely to have been derived from Russian oil.
The Australian-owned company last week acknowledged importing three tanker-loads of fuel worth about $100 million to New Zealand from India’s mega Jamnagar oil refinery, which is a major processor of Russian crude.
The Government is currently reviewing guidance provided by the Ministry of Foreign Affairs and Trade (Mfat) that created a gaping hole in the Russian sanctions regime by indicating any such imports were allowed.
BP, the country’s second largest petrol-station chain, refused to say whether it had imported refined fuel that was likely to have been derived from Russian crude or what, if any, steps it had taken to avoid such imports.
But American-owned petrol chain Mobil is looking like a good bet for motorists who are keen on avoiding association with Russian oil.
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Mobil said all the fuel it had imported during the past 12 months was sourced from its own refinery in Singapore that did not process Russian crude.
Mobil said it was “committed to continuing to meet our compliance requirements should additional restrictions be introduced”.
Regulations given effect to under the Russian Sanctions Act prohibit importing “directly or indirectly, a coal, oil or gas product of Russian origin into New Zealand”.
However, a little-known guidance note on the sanctions issued by Mfat in October 2022 gives carte blanche for importing such products if they are refined outside of Russia.
The note states that Russian crude oil that has been refined in a third country “will be regarded as having the origin of the country undertaking the refining, for import purposes”.
Mfat included a caveat in its guidance that it did not constitute legal advice.
New Zealand stopped importing raw crude and has only imported refined fuels since the Marsden Point oil refinery closed in March 2022.
The Government confirmed to The Post on Wednesday that Mfat’s guidance was now being reviewed.
Mfat is in discussions with fuel importers and it is understood talks have also taken place with the UK government about how the sanctions approach could be tightened.
Foreign Minister Winston Peters has been asked via his office when he became aware of Mfat’s guidance and whether he believed it was a correct interpretation of the intent of the sanction regulations, but has not provided a response.
His office said “we’ve nothing further to add to the responses provided by Mfat”.
Labour was in power at the time the Russian Sanctions Act was passed and the ministry issued its guidance.
Labour’s foreign affairs spokesperson Peeni Henare said he was not involved in drafting the guidance note “but the intent of the sanctions was clear; New Zealand should not be contributing to Russia’s war effort”.
“I support any steps to ensure the sanctions work as intended,” he said.
Z Energy has declined to say whether it was the New Zealand subsidiary itself, or its Australian owner Ampol, that ordered its fuel shipments from India.
The Sydney Morning Herald last week reported claims Ampol had imported A$3.8 billion (NZ$4.2 billion) worth of refined Russian oil products into Australia since February 2023.
It reported the owner of the Jamnagar refinery, Reliance Industries, had promised to stop exporting fuel derived from Russian crude from Monday, while still supplying it to Indian buyers.
BP said it sought to comply with “all applicable regulatory frameworks around the world”.
Z Energy has said it is deeply committed to complying with all applicable laws and sanctions in New Zealand, while referring to what it described as “a global industry challenge”.
“We remain in active dialogue with Government to strengthen assurance processes and identify practical solutions, while ensuring the safe and reliable supply of fuel to New Zealand.”
In addition to Z, BP and Mobil, two other New Zealand firms import petrol in bulk.
Gull has been asked whether it had imported refined fuel that was likely to have been derived from Russian crude and what if, any steps, it took to avoid that, but has not so far provided a response.
Philippe Dubau, managing director of Timaru Oil Services (TOSL), said all its imports came from “Malaysia and Singapore”.
“TOSL’s supplier issues certificates of origin for the products and certifies compliance with the said trade restrictions,” he said.
Like India, both Malaysia and Singapore are reported to import some Russian crude, so TOSL has been contacted for further clarification.