Indonesia maintains Russian oil plans despite possible US penalties
Indonesia plans to continue importing discounted Russian crude to support domestic energy supplies and ease fiscal pressure, according to the South China Morning Post. The decision comes after US legislation expanded presidential authority to impose sanctions and tariffs on major buyers of Russian energy.
Indonesia plans to continue importing discounted Russian crude oil despite what the South China Morning Post describes as a real risk of higher US tariffs. The imports are intended to secure domestic energy supplies and help manage fiscal pressures, according to the report. Indonesia’s position comes as Washington moves to increase economic pressure on Moscow.
On Friday, US President Donald Trump signed legislation giving him authority to impose sanctions on Russia and tariffs of up to 100 per cent on the five largest buyers of Russian crude oil, gas and military equipment, or on countries that help Moscow, the report said. The supplied material does not say whether Indonesia has been designated as one of the five largest buyers, whether any US measure has been imposed or how Jakarta would respond to possible penalties. It also does not provide the planned volume or timing of Indonesian purchases.
The available information establishes that Indonesia is prioritising cheaper Russian crude for energy and fiscal reasons while accepting the possibility of increased pressure from the United States.
This independently written report is based on information supplied by the named publisher. Vertrix News has not independently verified the source report.