EU flags Karimun terminal in Russia sanctions, operator denies any link to shadow fleet

By Romel S. Gurky

Oil terminal firm PT Oil Terminal Karimun said it has not been designated as a sanctioned entity under the European Union’s latest sanctions package, following confusion over references to its facility in a newly issued regulation.

The clarification comes after the EU included “Karimun Oil Terminal” in its latest sanctions package targeting Russia, marking the first time the bloc has referenced port infrastructure outside Russia in its energy-related measures.

In a statement, the company said Council Regulation (EU) 2026/506, published on April 23, includes the reference only as infrastructure listed in an annex, not as a sanctioned legal entity.

The company emphasized that it is not subject to asset freezes or direct restrictions and is not listed as a sanctioned company, operator or counterparty.

“The reference is an infrastructure or location listing and should not be interpreted as a designation of PT Oil Terminal Karimun as a sanctioned legal entity,” the company said.

Read also: Pelindo operates multipurpose terminal at Pangkalbalam Port

PT Oil Terminal Karimun added that the wording used in the regulation does not correspond to its registered legal name and does not constitute a corporate designation.

The EU measure relates to what it describes as a “port infrastructure ban,” targeting facilities viewed as linked to Russia’s so-called shadow fleet used to transport oil under sanctions. However, the regulation does not identify Indonesia as directly involved in sanctions violations.

The company said the inclusion has raised reputational concerns among counterparties, including banks, insurers and customers, and rejected any suggestion of involvement in sanctions evasion, shadow fleet activity or deceptive shipping practices.

It also clarified that it does not operate crude oil storage or handling infrastructure and denied allegations related to the storage or transshipment of Russian crude.

The firm said it maintains compliance procedures including counterparty screening, vessel checks and documentation review, and only accepts transactions that meet applicable regulations.

The EU regulation primarily affects transactions involving EU-linked entities or services, and does not automatically apply to activities conducted entirely outside the European Union by non-EU parties, the company added.

PT Oil Terminal Karimun said it is reviewing the regulation and plans to engage with stakeholders to seek clarification, while continuing operations in accordance with Indonesian law and international maritime standards.

Editing by Alexander Ginting