Dragged into EU Sanctions on Russia, Profile of Karimun Oil Terminal

The European Union has officially added the Karimun Oil Terminal in Indonesia to the list of the 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. The European Commission states that this latest package is designed to push Moscow back to the negotiating table on terms acceptable to Kyiv. “The European Union’s commitment to a free and sovereign Ukraine is unwavering,” reads the official statement from the Commission, quoted on Monday (27/4/2026). “Every day that Russian attacks on Ukraine’s civilian infrastructure continue is an additional day of suffering for the Ukrainian people.” The 20th sanctions package is said to focus on expanding pressure on Russia’s main revenue sources, particularly the energy sector. In addition, the sanctions target financial services including crypto, trade, and propaganda media. Those provisions also include the activation for the first time of the “anti-circumvention” instrument to block exports of critical goods from the EU to third countries used to bolster Russia’s military. Meanwhile, the inclusion of the Karimun Oil Terminal on the sanctions list marks the first time for port infrastructure in a third country outside Russia. The facility is assessed to be linked to shadow fleet activities and efforts to circumvent the international oil price cap policy. Besides the facility in Indonesia, the European Union has also imposed similar sanctions on two major Russian ports, namely Murmansk and Tuapse. With this addition, there are now a total of 632 ships on the list of Russia’s shadow fleet prohibited from accessing ports or receiving maritime services from operators in EU territories. Denial from PT Oil Terminal Karimun PT Oil Terminal Karimun (OTK) has spoken out regarding the mention of the Karimun Oil Terminal in the latest EU sanctions list through Council Regulation (EU) 2026/506. According to the company, PT OTK is not the entity targeted in the new EU sanctions package. The company emphasises that the legal status and operational facilities of their terminal in Indonesia do not fall under the category of legal entities subject to asset-blocking sanctions. PT OTK management explains that the mention of “Karimun Oil Terminal, Indonesia” in the regulation’s annex has caused public misunderstanding. The company assures that its operations have always complied with the applicable regulatory and legal framework in Indonesian jurisdiction as well as international maritime standards. “OTK clarifies from the outset that neither PT Oil Terminal Karimun nor its terminal has been designated as a legal entity subject to sanctions under this regulation; the reference in question solely relates to the list of infrastructure or locations in the annex regarding ports and infrastructure,” management wrote in an official statement, quoted on Monday (27/4/2026). The company stresses that the name listed in the EU document is not the registered legal name or corporate designation of PT Oil Terminal Karimun. Management views this inclusion as damaging to the company’s reputation in the eyes of international business partners by associating it with illegal activities. “This reference has caused serious reputational concerns for OTK, its business partners, and legitimate business conducted at the facility under applicable Indonesian jurisdiction and regulatory framework,” management added. Profile of Karimun Oil Terminal The Karimun Oil Terminal is operated by PT Oil Terminal Karimun (OTK). According to the company’s official website, PT OTK is a premium oil terminal operator meeting global energy market demands. PT OTK operates at the junction of the Malacca and Singapore Straits, providing storage and handling of fuel oil and clean petroleum products. Its business activities include ship loading and unloading, cargo blending for tank-to-tank transfers, and barge bunkering operations. PT OTK is recorded to have 30 storage tanks for various products. There are also 4 deep-water berths to accommodate various types of ships. These berths have capacities ranging from 19,500 MT to 362,200 MT deadweight, with the largest berth able to accommodate VLCCs. The company also has a tank capacity of up to 719,857 cubic metres and is integrated with 12 berth pipelines and 24 product pumps. The company can also store clean petroleum products (CPP) and heavy petroleum products (DPP).