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(Bloomberg) — Indonesia imported Russian crude oil for the first time since a deal struck between the two nations in April, a sign of how Moscow has taken advantage of the Iran conflict to grow its customers.
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Just under 770,000 barrels was delivered to Indonesia’s Balikpapan port on June 29, valued at about $75 million, according to customs data compiled by Big Trade Data. The port of loading listed was Kozmino in Russia, and the oil was carried on the tanker Sierra.
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Purchases of Russian crude have drawn scrutiny ever since the invasion of Ukraine in early 2022, which prompted countries from Europe to the US to impose restrictions in a bid to curb Moscow’s revenues and bring the war to an end.
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The surge in prices due to the Iran war has been a boon to Russia in that regard. The shipment to the Southeast Asian nation is the first since a supply deal for up to 150 million barrels was agreed following a visit to Moscow by Indonesian President Prabowo Subianto.
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Indonesia has imported Russian crude in the past. Tanker tracking data shows sporadic flows earlier this year and last. These have tended to come from the country’s eastern coast, which produces grades like Sakhalin and ESPO Blend.
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Major Importer
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The country is a major oil importer and has faced a steep rise in fuel costs since the Iran conflict snarled shipments through the Strait of Hormuz. The hefty procurement bill helped drive the rupiah to a record low against the dollar last month, while increases in local gasoline and diesel prices have galvanized protests against the government.
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Unusually, the Russian cargo was bought by a government entity known as Lemigas, whose primary responsibility is fuel testing. Indonesia’s energy imports are mostly handled by PT Pertamina, the national oil company.
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Indonesia’s energy ministry, which administers Lemigas, didn’t respond to request for comment.
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The exporter of the shipment was a Singapore-based company, Silkroute Shipping & Chartering Pte, according to the customs data.
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The company couldn’t immediately be reached for comment. Silkroute doesn’t appear to have a website and no contact details were included in its public listing in a register of Singaporean firms.
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