Putin-linked Russian oligarchs with Australian assets escape Morrison government sanctions

The Morrison government is facing questions over why it has not included two Russian oligarchs, who have assets in Australia, among those it has imposed sanctions against over the invasion of Ukraine.

Director of climate and environment at activist investor group the Australasian Centre for Corporate Responsibility, Dan Gocher, said Australia should impose sanctions on Deripaska and Vekselberg.

A Rio Tinto spokesperson declined to comment on whether the company had lobbied for or against any person being included on the sanctions list and Guardian Australia does not suggest that it has.

The government has not ruled out further expanding sanctions.

Following media coverage of the issue, the government signalled it was likely to act soon.

As Guardian Australia has previously reported, Vekselberg has an interest in an exploration project in the Beetaloo Basin, an area in the Northern Territory touted by the Morrison government as a key part of a gas-led recovery from the Covid crisis, through his shareholding in a London-listed company, Falcon Oil & Gas.

A company founded by Deripaska, EN+ Group, owns 20% of Queensland Alumina Limited, which operates a plant in Gladstone that refines bauxite into alumina, the remainder of which is owned by Rio Tinto.

Deripaska formerly controlled EN+ but after he was sanctioned by the US in 2018 reduced his stake in it to 45% so that it was not captured by the measures against him.

Rio Tinto and an EN+ subsidiary, Rusal, pay QAL to refine the bauxite in proportion to their ownership of the plant. Rusal also buys its share of the bauxite refined by QAL from Rio. In addition, the partners provide debt finance to QAL, also in proportion to their ownership, and in return receive interest payments from the refinery.

In the event of sanctions taking in Rusal, Rio Tinto would take over operation of QAL.