Indonesia received its first shipment of Russian oil since signing the agreement with Moscow
Indonesia has received its first shipment of Russian oil since signing an energy agreement with Russia. Specifically, on June 29, nearly 770,000 barrels of Russian oil, worth about $75 million, were delivered to the port of Balikpapan. The cargo was shipped from the Russian port of Kozmino and transported by the tanker Sierra.
This is the first such shipment since the April agreement between Moscow and Jakarta, which was signed during Indonesian President Prabowo Subianto’s visit to Russia. The agreement provides for the delivery of up to 150 million barrels of oil.
According to Bloomberg, since the start of Russia’s full-scale war against Ukraine, purchases of Russian oil have been under close scrutiny by the international community due to sanctions imposed by Western countries to limit the Kremlin’s oil revenues.
At the same time, the conflict surrounding Iran and disruptions to supplies through the Strait of Hormuz have caused global oil prices to rise, making Russian crude more attractive to certain importers.
Indonesia is one of the largest oil importers in the region. Following a spike in fuel prices, the country has faced rising energy costs, a weakening national currency, and protests over higher prices for gasoline and diesel fuel.
According to customs data, the purchase of Russian oil was made by the state-owned organization Lemigas, which typically conducts fuel testing. The shipment was exported by Silkroute Shipping & Chartering Pte, a company registered in Singapore.
Bloomberg reports this.
As a reminder, the price of Russia’s flagship Urals crude has fallen to levels last seen before the escalation of the Middle East conflict, putting serious pressure on the Kremlin’s state budget.
Oil prices could fall to $60 per barrel as early as this year.
Saudi Arabia has announced record discounts on its oil.
