Russian oil finds hidden route through Indonesia's Karimun island terminal
Investigations reveal that the oil terminal on Indonesia's Karimun island has been used to receive and re-export Russian oil products, exploiting the island’s free-trade status.
Karimun island, a small Indonesian free-trade zone near Singapore, hosts an oil terminal that has attracted attention for handling Russian oil after European sanctions limited Moscow’s access to European markets. Tracking data indicate that Russian-origin products have been arriving at the terminal on a monthly basis since October 2024, with some cargoes mixed with other oils and re-marked before being shipped onward to destinations such as Malaysia, Singapore and China.
The terminal’s capacity is large, and its fenced, high-security site is guarded against unauthorized entry. Local residents and a veteran seafarer, Fajar Ahmed, report a noticeable increase in tanker traffic, many of which bear no visible flags or markings, making the origin of the cargo difficult to trace. The terminal is owned by PT Oil Terminal Karimun, which is controlled by Dubai-registered Novus Middle East DMCC, and the company publicly rejects claims that it facilitates Russian oil trade. Indonesia maintains that the facility operates under its sovereign energy policies and does not wish to be drawn into great-power disputes.
Why it matters
The story shows how sanctions can be circumvented through obscure ports, affecting global oil markets and geopolitical tensions.
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