Russia is using Indonesia’s Karimun port as a key hub to circumvent sanctions by blending its oil with other products and re-exporting it to Asian countries beyond Indonesia’s control, according to Ukraine’s Foreign Intelligence Service
Details
In the context of Western sanctions, Russia is actively seeking alternative routes for exporting oil and petroleum products. According to Ukraine’s Foreign Intelligence Service, the Indonesian port of Karimun has become the largest transshipment hub for Russian oil in 2025. Notably, the terminal operates outside Indonesia’s legal jurisdiction due to its location in a free trade zone and is not subject to government control.
“Transshipment through Karimun allows Russian companies to bypass sanctions. At the port, Russian oil products are blended with products from other countries. Once mixed, the cargo is considered to be of Indonesian origin, making it exempt from Western sanctions. The refined oil products are then re-exported to Singapore, Malaysia, and China,” Ukraine’s Foreign Intelligence Service reported.
Trade Volumes
According to intelligence data, since the beginning of 2025, approximately 590,000 tonnes of fuel oil have been exported through Karimun from Russia’s Ust-Luga port (compared to about 100,000 tonnes in January–March 2024). In addition, Karimun received around 217,000 tonnes of Russian diesel and 50,000 tonnes of crude oil in 2025 for the first time.
Between March and April 2025, at least three shipments arrived in Karimun aboard tankers sanctioned by the EU and the United Kingdom. Intermediaries in this trade reportedly include obscure trading firms that frequently change their names before reaching final destinations, according to Ukraine’s Foreign Intelligence Service.
