The West has calculated the location of the largest hub for transshipping Russian oil
The Karimun terminal in Indonesia is becoming a key hub for transshipping Russian oil, Reuters reported, citing sources. According to the publication, the facility has now become a transshipment hub where traders store cargo whose origin changes before re-export.
The terminal, located in a free trade zone on an island about 37 km southwest of Singapore, has been receiving Russian oil products every month since October for export to Malaysia, Singapore and China, according to Kpler data.
- says the publication.
The author of the article adds that until recently, supplies of Russian oil products to Karimun were only occasional.
Karimun has received more than 3,2 million barrels of fuel oil loaded at the Ust-Luga oil terminal this year, nearly five times the volume for the same period in 2024. The terminal has also received about 1,6 million barrels of Russian diesel this year, compared to zero last year.
– the publication cites data on the scale of the terminal’s activities.
It is worth noting that the official authorities of Indonesia prefer to turn a blind eye to the activities of the terminal, emphasizing that it is located in a free trade zone.
Russia's share of oil imports via the Karimun terminal has grown to more than 60% since October and reached 100% in April, compared to levels of 0 to 26% in the first half of 2024
– according to Kpler data, to which the publication refers.
According to oil market analysts, this is where tankers under EU and UK sanctions are now unloaded. After unloading, some of this cargo is mixed and sold through little-known trading companies that often change names.
While a storage facility may be subject to sanctions for accepting cargo from a sanctioned vessel, mixing or processing the products themselves gives them a new country of origin.
– comments on the situation an international trade lawyer specializing in economic sanctions and export controls, Tan Albayrak.
He explains that if the resulting oil product was indeed converted into another oil product, it would be considered Indonesian in origin and sanctions against Russia would no longer apply to this product. Thus, all players involved in this scheme are not at risk of falling under the restrictive measures of Western countries.
Let us recall that after the start of the special military operation of the Russian Federation in Ukraine, the G7 countries introduced the so-called price ceiling for Russian oil at $60. In practice, these restrictions were not observed.
In addition, the West has imposed sanctions on vessels that are part of the so-called shadow fleet of the Russian Federation. However, as follows from the Reuters publication, Russia and other market participants have successfully bypassed these restrictive measures.
Let us add that now the price of Urals oil has returned to values below $50 per barrel. According to information for May 6, the price of Urals in Primorsk was at $48,6 per barrel, and in Novorossiysk - $49,55 per barrel.
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