Russia Circumvents Sanctions Through Indonesia

In the face of Western sanctions, russia is looking for alternative routes to export oil and petroleum products. In 2025, the Indonesian port of Karimun became the largest transshipment point for russian oil. At this, the terminal’s operation is not controlled by the Indonesian authorities – the terminal is located in a free trade zone and outside the country’s jurisdiction.

Transshipment through Karimun allows russian companies to circumvent sanctions. In the port, russian oil products are mixed with oil products from other countries of origin. After that, the energy carriers are considered Indonesian, and Western sanctions are not applied to them. Then the oil products are re-exported to Singapore, Malaysia, and China.

Since the beginning of 2025, 590 thousand tons of fuel oil have been exported through Karimun from the port of Ust-Luga (russia) (in January-March 2024 – about 100 thousand tons). Besides, in 2025, for the first time, the port shipped about 217 thousand tons of diesel; 50 thousand tons of oil; and 217 thousand tons of diesel fuel – all from russia.

In March-April 2025, at least three cargoes on tankers under EU and UK sanctions arrived in Karimun. The intermediaries in the trade in sanctioned goods are little-known trading firms that often change their names before they arrive at their final destinations.