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Indonesia looks to purchase Russian oil after decade-long break: report

Indonesia looks to purchase Russian oil after decade-long break: report

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Indonesia’s state-owned refinery, Pertamina, has included Russian crude oil grades in its September tender lists for purchase after many years, as reported by Reuters. The last time Pertamina bought Russian oil was over a decade ago, according to LSEG.

Pertamina requested Russian Urals oil and other grades for arrival at its Cilacap refinery, along with sweet oil grades including Sokol oil. The tenders for these purchases were recently closed, and results are yet to be announced.

In the midst of Western sanctions against Russian energy sectors and a price cap regulation, Pertamina aims to buy Russian oil at a price below $60 per barrel. The move comes amidst global shifts in the oil market due to geopolitical tensions and trade restrictions.

While Indonesia enters the market for Russian crude, other countries like China, India, and Turkey continue to be major buyers despite the ongoing conflicts. Ukraine’s strategic targeting of Russian oil industry through drone strikes has also impacted global oil markets.

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