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Russia uses Indonesian port to bypass oil sanctions, Ukrainian intelligence says

Russia uses Indonesian port to bypass oil sanctions, Ukrainian intelligence says Photo: Russia uses the Indonesian port of Karimun to bypass sanctions (Getty Images)
Author: Bohdan Babaiev

Russia has found a new way to bypass Western sanctions, using the Indonesian port of Karimun. This route allows Russian oil products to reach markets in Singapore, Malaysia, and China, reports the Foreign Intelligence Service of Ukraine.

According to intelligence, the Indonesian port of Karimun became the largest transshipment point for Russian oil in 2025. The terminal's operations are not controlled by the Indonesian government. It is located in a free trade zone and is outside the country's jurisdiction.

As a result, Russian companies can bypass Western sanctions by transshipping goods in Karimun. There, Russian oil products are mixed with products from other countries of origin. Afterward, the energy resources are considered Indonesian, and Western sanctions do not apply to them. They are then re-exported to Singapore, Malaysia, and China.

Sanctions-bypassing oil deliveries

Since the beginning of 2025, 590,000 tons of fuel oil have been exported from the Russian port of Ust-Luga through Karimun by companies. Additionally, in 2025, around 217,000 tons of diesel, 50,000 tons of oil, and 217,000 tons of diesel fuel were first shipped from Russia through this port.

Between March and April 2025, at least three shipments arrived in Karimun on tankers that are under EU and UK sanctions. The intermediaries in the trade of sanctioned goods are obscure trading firms that often change their names before reaching their final destinations.

Sanctions against Russia's shadow fleet

According to the Defense Intelligence of the Ministry of Defense of Ukraine, Russia has built a massive shadow fleet to transport its oil products and evade international sanctions. The fleet consists of nearly 1,000 aging vessels with a combined carrying capacity of over 100 million tons.

Recently, Bloomberg reported that the European Union is preparing new sanctions against Russia, targeting its shadow fleet, particularly tankers used by the Kremlin to bypass the oil embargo.

The British government has also announced the largest sanctions in history against Russia’s shadow fleet. The move is intended to ramp up pressure on Russian President Vladimir Putin while helping safeguard critical infrastructure in the UK and across Europe.

The UK is targeting up to 100 oil tankers, which make up the bulk of Russia’s shadow fleet and have been used to transport more than $24 billion worth of cargo since the start of 2024.