Autonomous Sanctions (Sanctioned Vessels – Russia) Amendment (No. 1) Designation 2025

Administered by Department of Foreign Affairs and Trade

Legislation au F2025L01122 Not in force Legislative Instrument

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Explanatory Statement

 

Issued by the authority of the Minister for Foreign Affairs (the Minister)

 

Autonomous Sanctions Regulations 2011

 

Autonomous Sanctions (Sanctioned Vessels – Russia) Amendment (No. 1) Designation 2025

 

The purpose of the Autonomous Sanctions (Sanctioned Vessels – Russia) Amendment (No. 1) Designation 2025 (the Amending Instrument) is to amend the Autonomous Sanctions (Sanctioned Vessels – Russia) Designation 2025 to provide for the designation of a further 95 vessels.

 

Autonomous sanctions are measures not involving the use of armed force which the Australian Government imposes as a matter of foreign policy in response to situations of international concern. Such situations include Russia’s illegal invasion of Ukraine. Despite international sanctions on the Russian oil industry, Russia continues to profit from oil exports through the operation of a fleet of vessels commonly referred to as the ’Shadow Fleet’. The Shadow Fleet is deployed in the trade of sanctioned goods, or oil products and engaging in various deceptive shipping practices. Oil is a critical sector of the Russian economy and remains a significant enabler of Russia’s ability to fund its illegal invasion.

 

Paragraph 8(1)(a) of the Autonomous Sanctions Regulations 2011 (the Regulations) authorises the Minister, by legislative instrument, to designate a vessel as a sanctioned vessel for a country mentioned in the designation. Subregulation 8(4) of the Regulations authorises the Minister to direct a sanctioned vessel to leave Australia, including by a particular route; or not enter a particular port or place, or any port or place, in Australia. The Minister must have regard to Australia’s obligations at international law before giving the direction. It is an offence under regulation 16 of the Regulations to contravene the Minister’s direction given under subregulation 8(4). Under Regulation 17 of the Regulations, a sanctioned vessel is forfeitied to the Commonwealth if a direction is given to the sanctioned vessel under subregulation 8(4) and the sanctioned vessel contravenes the direction.  

 

Each of the 95 vessels listed in the Amending Instrument is designated by the Minister for the purposes of paragraph 8(1)(a) of the Regulations. The Minister is of the view that each vessel listed in the Amending Instrument is involved in illegal activities to undermine Australian and international sanctions by facilitating the export of Russian energy products.

 

The corresponding authority for the Minister to revoke the designation under paragraph 8(1)(a) is found in paragraph 10(1)(a) of the Regulations. Subregulations 10(2) and (5) provides that the Minister may revoke a designation of the Minister’s initiative, or on application.

 

The imposition of further Australian autonomous sanctions is designed to constrain Russia’s ability to fund its illegal invasion of Ukraine through increased pressure on Russia’s ability to fund its war effort.

 

Details of the Amending Instrument are set out at Attachment A.

 

The legal framework for the imposition of autonomous sanctions by Australia, of which the Regulations are part, was the subject of extensive consultation with governmental and non-governmental stakeholders when introduced. The new sanctions being imposed through the making of the Amending Instrument were subject to targeted consultation within government and with relevant international partners.

 

In order to meet the policy objective of prohibiting unauthorised entry into Australian ports of the vessels specified in the Amending Instrument, the Department is satisfied that wider consultations beyond those it has already undertaken would not be appropriate and unreasonably practicable to undertake (section 17(1) of the Legislation Act 2003 (Cth)).

 

The Amending Instrument is exempt from sunsetting under table item 10B of section 12 of the Legislation (Exemptions and Other Matters) Regulation 2015. This was granted on the basis that instruments made under regulation 8(1) of the Autonomous Sanctions Regulations 2011 (the Regulations) were subject to a more stringent statutory review process than is set out in Part 4 of Chapter 3 of the Legislation Act 2003.  This review process was contained in regulation 9 of the Regulations, which has subsequently been repealed.  While the statutory review process has been repealed, it is noted the Regulations themselves are due to sunset on 1 October 2027. Review of these instruments, including sunsetting requirements, will be considered as part of the process to remake or replace the Regulations.

 

The Office of Impact Analysis has advised that a Regulation Impact Statement is not required for listing instruments of this nature (OBPR22-02078).

Attachment A

 

Autonomous Sanctions (Sanctioned Vessels – Russia) Amendment (No. 1) Designation 2025

 

Section 1

The title of the instrument is the Autonomous Sanctions (Sanctioned Vessels – Russia) Amendment (No. 1) Designation 2025 (the Amending Instrument).

 

Section 2

The Amending Instrument commences the day after the instrument is registered.

 

Subsection 2(2) is a technical provision that makes clear that any information inserted in column 3 of the table about the specific date of commencement is not part of the Amending Instrument.

 

Section 3

The Amending Instrument is made under subregulation 8(1) of the Autonomous Sanctions Regulations 2011 (the Regulations).

 

Section 4

Each instrument that is specified in a Schedule to the Amending Instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in the Amending Instrument has effect according to its terms.

 

Schedule 1

 

Autonomous Sanctions (Sanctioned Vessels – Russia) Designation 2025

 

The vessels listed in the table in clause 1 of Schedule 1 of the Amending Instrument will be added to the list in the Autonomous Sanctions (Sanctioned Vessels – Russia) Designation 2025 and are designated by the Minister for Foreign Affairs (the Minister) for the purposes of paragraph 8(1)(a) of the Regulations.

 

The vessels include Shadow Fleet vessels who support Russia’s defence industrial complex through the evasion of autonomous sanctions and the Oil Price Cap.

 

The Minister exercised their discretion to designate these vessels as sanctioned vessels being satisfied that is in accordance with the objects and purpose of the Autonomous Sanctions Act 2011 (Cth).  


Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the

Human Rights (Parliamentary Scrutiny) Act 2011

 

Autonomous Sanctions (Sanctioned Vessels – Russia) Amendment (No.1) Designation 2025

 

The Amending Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 (Cth).

 

Australia’s autonomous sanctions framework imposes highly targeted measures in response to situations of international concern. This includes threats to the sovereignty and territorial integrity of a State. Given the serious nature of Russia’s ongoing invasion of Ukraine, the Government considers that vessel designations are an effective way to achieve its legitimate foreign policy objectives of signalling opposition to Russia’s aggression and seeking to influence the Russian state to withdraw from Ukrainian territory and restrict Russia’s oil revenues in furtherance of its aggression. These sanctions allow a targeted response to Australia’s concerns relating to Russia’s unprovoked and completely unjustified attack on Ukraine.

 

The autonomous sanctions designations made by the Amending Instrument pursue legitimate objectives and have appropriate safeguards in place to ensure that any limitation on human rights engaged by the imposition of sanctions is a reasonable, necessary and proportionate response to the situation of international concern, and do not affect particularly vulnerable groups. The Government keeps its sanctions frameworks under regular review, including in relation to whether more effective, less rights restrictive means are available to achieve similar foreign policy objectives.

 

The owner of a sanctioned vessel, or the person who controls a sanctioned vessel, may apply to the Minister for the revocation of the designation under paragraphs 11(1)(d) and (e) of the Autonomous Sanctions Regulations 2011 (the Regulations). Decisions under both regulations 8 and 11 of the Regulations are judicially reviewable.

 

The designation of a vessel under paragraph 8(1)(a) of the Regulations does not affect title to the vessel by its owner, or the person under whose control it is. A sanctioned vessel is forfeited to the Commonwealth under regulation 17 of the Regulations if a direction is given to the vessel pursuant to subregulation 8(4), and the vessel contravenes the direction. This paragraph does not apply if the contravention is necessary to secure the safety of the vessel or human life, or is authorised or required under Part IIIAAA of the Defence Act 1903 (Cth).

 

The Regulations make provision for, among other things, the proscription of persons or entities for autonomous sanctions. The Amending Instrument designates 95 vessels. The Minister for Foreign Affairs (the Minister) designated the vessels being satisfied that each of the designations is in accordance with the objects and purpose of the Autonomous Sanctions Act 2011 (Cth).  

Overview

The Autonomous Sanctions (Sanctioned Vessels – Russia) Amendment (No. 1) Designation 2025 is an instrument enacted to address the issue of Russia's continued oil exports through a fleet of vessels known as the "Shadow Fleet," which engage in deceptive shipping practices and trade of sanctioned goods, thereby undermining international sanctions. This amending instrument falls under the Autonomous Sanctions Regulations 2011, which provide the framework for imposing autonomous sanctions as a matter of foreign policy in response to situations of international concern, such as Russia's illegal invasion of Ukraine. The enactment of this legislation is within the authority of the Minister for Foreign Affairs, who has designated 95 vessels involved in illegal activities to facilitate the export of Russian energy products. The policy objective of this legislation is to increase pressure on Russia's ability to fund its war effort by constraining its oil revenues and signal opposition to its aggression. The autonomous sanctions framework is subject to regular review to ensure it remains effective and proportionate in achieving its legitimate foreign policy objectives.

Scope and Application

The Autonomous Sanctions (Sanctioned Vessels – Russia) Amendment (No. 1) Designation 2025 is an instrument under the Autonomous Sanctions Regulations 2011, which applies to the designation of 95 vessels that are involved in the illegal activities facilitating the export of Russian energy products. The Minister for Foreign Affairs has the authority to designate these vessels as sanctioned vessels under paragraph 8(1)(a) of the Regulations, and such designation is made with regard to Australia's obligations under international law. The designation does not affect the title to the vessel by its owner or the person under whose control it is. The Regulations also provide for the forfeiture of a sanctioned vessel to the Commonwealth if a direction is given to the vessel and the vessel contravenes the direction. The imposition of these autonomous sanctions is designed to constrain Russia's ability to fund its illegal invasion of Ukraine through increased pressure on Russia's ability to fund its war effort. The Amending Instrument is exempt from sunsetting under table item 10B of section 12 of the Legislation (Exemptions and Other Matters) Regulation 2015. The Regulations themselves are due to sunset on 1 October 2027, and review of these instruments, including sunsetting requirements, will be considered as part of the process to remake or replace the Regulations.

Key Provisions

The main operative sections of the Autonomous Sanctions (Sanctioned Vessels – Russia) Amendment (No. 1) Designation 2025 (the Amending Instrument) involve the designation of 95 vessels as sanctioned vessels for the purposes of the Autonomous Sanctions Regulations 2011 (the Regulations). Under paragraph 8(1)(a) of the Regulations, the Minister for Foreign Affairs is authorised to designate a vessel as a sanctioned vessel for a country mentioned in the designation. The Amending Instrument specifies that the Minister has designated these vessels due to their involvement in illegal activities that undermine international sanctions by facilitating the export of Russian energy products. The Amending Instrument also provides for the revocation of these designations under paragraph 10(1)(a) of the Regulations, either on the Minister's initiative or upon application. The obligations imposed by the Amending Instrument on the parties or entities it governs include the requirement for sanctioned vessels to comply with any directions issued by the Minister, such as directives to leave Australian waters or to avoid entering Australian ports. These obligations are detailed under subregulation 8(4) of the Regulations, which mandates that the Minister must consider Australia's obligations under international law when issuing such directions. Additionally, the Regulations under regulation 17 provide that a sanctioned vessel is forfeited to the Commonwealth if it contravenes a direction given under subregulation 8(4), unless the contravention is necessary to ensure the safety of the vessel or human life, or is authorised or required under Part IIIAAA of the Defence Act 1903. The Amending Instrument introduces several potential offences and penalties for breach of the Regulations. Regulation 16 of the Regulations stipulates that it is an offence to contravene a direction issued by the Minister under subregulation 8(4). The penalties for such contraventions are not explicitly detailed in the Amending Instrument but are likely to be severe given the context of autonomous sanctions related to international aggression and illegal activities. Furthermore, regulation 17 of the Regulations provides for the forfeiture of a sanctioned vessel to the Commonwealth if it contravenes a direction issued by the Minister, except in circumstances where the contravention is necessary for safety reasons or is authorised under the Defence Act. In summary, the Amending Instrument facilitates the designation of vessels involved in supporting Russia's illegal activities by imposing targeted sanctions that align with Australia's foreign policy objectives. These measures are designed to constrain Russia's ability to fund its invasion of Ukraine and to exert pressure on its war effort. The Regulations impose clear obligations on designated vessels and their owners, with significant penalties for non-compliance, including potential forfeiture of the vessel to the Commonwealth.

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