Dragged into EU Sanctions, Karimun Oil Terminal Assured to Continue Operating!
Jakarta, CNBC Indonesia - The Ministry of Energy and Mineral Resources (ESDM) has assured that the Karimun Fuel Oil Terminal will continue to operate normally, even though it was caught up in issues surrounding European Union sanctions amid the dynamics of global energy trade.
The Director General of Oil and Gas at the Ministry of ESDM, Laode Sulaiman, emphasised that the issue has no direct impact on the terminal’s operations.
In fact, he views the Karimun Fuel Oil Terminal as having a strategic role in strengthening the national energy infrastructure. In the future, the facility still has potential for expanding its storage capacity.
“So everything is running smoothly, and Karimun will even serve as one of our strengths. Because there’s still space there to add more storage capacity,” Laode said when met at the Ministry of ESDM on Monday night (4/5/2026).
Therefore, he assured that despite the emerging sanctions issue, all development plans and operations of the terminal will proceed as planned. Moreover, this issue is not new.
“There have been issues before. We’re just staying on track. We’re an actively independent country politically. So we pursue cooperation interests with various countries. Not just one country,” he said.
As is known, the European Union has officially included the Karimun Oil Terminal in Indonesia on the list of its latest sanctions against the Russian Federation.
This is outlined in the 20th sanctions package by EU member states against Russia, released by the European Union on 23 April 2026.
Here are the details:
Energy Sector
36 new entities from the Russian energy sector have been added to the sanctions list, covering activities from exploration, extraction, refining, to oil transportation.
The European Union has added new entities to the Russian shadow fleet network, including companies in third countries, one major maritime insurance company, and 46 additional vessels. The total number of vessels on the list now reaches 632, which are subject to port access bans and services. However, 11 vessels have also been removed from the list for returning to compliance.
Due diligence obligations have been imposed on sellers in the European Union, along with a “no to Russia” clause in sales contracts to prevent vessels from being used in illegal networks. Rules for vessel scrapping have also been introduced to reduce the shadow fleet.
Two Russian ports, Murmansk and Tuapse, have been added to the sanctions list, along with one port in a third country, namely the Karimun Oil Terminal in Indonesia, due to links to oil price circumvention and the Russian shadow fleet.
The European Union is preparing a legal basis to ban the transportation of Russian oil in the future, in collaboration with the G7 and the Price Cap Coalition.
Providing maintenance services for Russian LNG carriers and icebreakers is prohibited.
European Union operators are permitted to terminate long-term contracts with Russian parties.
Financial Sector
An additional 20 Russian banks are prohibited from doing business with European Union operators. The total number of affected banks now reaches 70.
Four banks in Kyrgyzstan, Laos, and Azerbaijan are subject to transaction bans for helping Russia evade sanctions.
A full ban has been imposed on transactions with Russian crypto service providers, including decentralised platforms.
The use of RUBx stablecoin and the digital rouble is prohibited due to their potential use in evading sanctions.
Cooperation with agents facilitating Russian international transactions to evade sanctions is banned.
Five financial entities from third countries have been removed from the list after providing compliance commitments.
Trade Sector
Goods worth more than €365 million, from rubber to tractors, are banned from export to Russia.
Restrictions on military technology, including explosives, laboratory equipment, and high-performance lubricants.
Provision of cybersecurity services to Russia is restricted.
Metals, chemicals, and minerals worth more than €530 million are subject to import bans.
An import quota for ammonia has been set to cap incoming volumes.
Russian Military Industry
58 companies and individuals involved in military production, including drones, are subject to sanctions.
Global suppliers are targeted, including entities from China, the United Arab Emirates, Uzbekistan, Kazakhstan, and Belarus that supply dual-use goods.
Anti-Sanctions Evasion
The European Union is cracking down on Kyrgyzstan for failing to prevent the re-export of goods such as machinery and telecommunications equipment to Russia, used in drone and missile production.
Addition of 60 entities, consisting of 32 in Russia and 28 in third countries like China, Turkey, UAE, and Thailand.
Additional Sanctions
- 120 new entities and individuals, including 33 individuals and 83 entities subject to asset freezes and travel bans. Targets include oligarchs, perpetrators of child abductions in Ukraine, propagandists, and those plundering cultural heritage.
Legal Protections for EU Companies
Courts in member states can now impose fines on Russian parties filing abusive lawsuits.
EU companies can seek compensation for adverse legal decisions in third countries.
A ban on transactions with parties enforcing such decisions.
Sanctions also target Russian parties exploiting unlawful takeovers of EU company assets.
Additional Measures
Mirror sites of media such as Russia Today and Sputnik will be blocked in the European Union.
Receiving funding from the Russian government in research and innovation is prohibited.
Extension to Belarus
This package also mirrors several sanctions against Russia into the sanctions regime against Belarus, particularly in trade, finance, services, and legal protections.