TRANSCRIPT:
Russia is the most sanctioned country in the world, with Australia among those to have rolled out measures against some Russian individuals and entities following its full-scale invasion of Ukraine.
These sanctions cover a range of regulations, including banning the export and import of a number of goods to and from Russia as well as restricting travel for individuals.
Doctor Christopher Michaelsen is an associate professor at the University of New South Wales' Faculty of Law and Justice.
"The purpose is to make life more difficult for Russia and to try to push them towards ending the conflict there. And at this point returning to the table to find a diplomatic negotiation solution."
So far, there have been at least three known challenges to Australia's sanctions -and all three have failed.
The most recent challenge has come from Australian company Tigers Realm Coal which has been mining coking coal in Russia and selling it to Asian markets since 2017.
It holds two exploration licenses and owns a port in the Arctic region of Chukotka.
Senior lawyer at the Australian Centre for International Justice, Melissa Chen, says it argued in the Federal Court that it only produces and transports coal within Russia and the ownership of the product ends at the port - and that Australian sanctions only target cross-border transport.
"What the court found is that Tigers Realm's narrow interpretation of transport could not be upheld… Those activities are in fact captured by Australia's sanctions laws."
Tigers Realm has since announced a plan to sell its Russian assets for 76.3 million dollars (AUD) to APM Invest, a company owned by Russian mining tycoon Mark Buzuk with alleged links to a number of Russian oligarchs.
It also plans to return assets to shareholders.
Clancy Moore is the Chief Executive Officer of Transparency International Australia.
"We know that one of the shareholders is a Russian entity that's been sanctioned by Australia known as the Russian Development Investment Fund... It's also essentially a sovereign wealth fund and has been labelled a slush fund for Vladimir Putin."
Tigers Realm has announced it will hold a General Meeting on May 28 where shareholders will vote on a number of resolutions, including the proposed sale.
It also stated in the Notice: “Any return of capital will only be made in compliance with all applicable laws, including the Sanctions Regime”.
"Given the nature of this case and the potential sale, I would expect Australia's regulators - including the sanctions office - to put the proposed sale under the microscope and look very carefully at the details of the sale and where the money is going."
In a statement to SBS, a spokesperson for the Department of Foreign Affairs and Trade said while it does not comment on specific compliance matters, "the Commonwealth is considering all relevant options with regard to compliance" and that "Our comprehensive suite of sanctions and trade measures are designed to ensure Australian businesses do not directly or indirectly support Russia's war effort."
Various sanctions against Russia have been rolled out in the course of the last decade, since its annexation of Crimea in 2014.
Dr Michaelsen says Russia has learned to adapt.
"They call this policy the Fortress Russia policy, and it's a policy that has sort of sought to diversify obviously trade, and specifically building up trade with China."
Experts suggest Tigers Realm's attempt to challenge sanctions could highlight gaps in Australia’s regulations.
One of them is Dr Anton Moiseienko, a senior lecturer in law at the Australian National University.
"Should there not be a clear and unambiguous prohibition on engaging in that sort of production or manufacturing activities, even if those products are never then moved to Australia but are sold elsewhere on the world’s market."
An amendment bill passed last month to clarify loopholes exposed during other challenges by sanctioned Russian individuals - including Oleg Deripaska, an oligarch sanctioned by Australia for his alleged links to Vladimir Putin.
Melissa Chen again.
"Lack of accountability can really breed impunity… If there is a lack of enforcement of these legal measures then there is no incentive, no deterrence, for other actors who may also be looking to breach those laws."
Robust sanctions are seen as the key to deterring companies and individuals from doing deals with the Kremlin.
