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Pertamina in talks with Russia on oil imports
State-owned oil-and-gas company Pertamina is in talks to buy crude oil from Russia while the G7 forum is trying to get other countries to join its push for a price cap on Russian oil.
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State-owned oil-and-gas company Pertamina is considering buying crude oil from Russia, which has been selling the fossil fuel to several countries at a discount, as Indonesia seeks to shield its state budget from high global energy prices. (AFP/Angelos Tzortzinis )
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tate-owned oil-and-gas company Pertamina is in talks to buy crude oil from Russia while the Group of Seven (G7) forum is trying to get other countries to join its push for a price cap on Russian oil.
“Pertamina is in contact with Russia’s side, that’s all I can say,” Russian Ambassador to Indonesia Lyudmila Vorobyova told a news conference in Jakarta on Wednesday. “We are ready [to sell crude], and the conditions are negotiated between relevant agencies and companies. What will the result be? We’ll see.”
Indonesia is considering the purchase of crude oil from Russia, which currently sells the commodity below global market prices to several countries, as the government seeks to shield domestic consumers from high international energy costs.
The surge in oil prices this year is straining the state budget as the government has increased subsidy spending to keep domestic fuel prices low, while also striving to keep its fiscal consolidation plan on track.
Pertamina was quoted by media in April as saying that it was studying the estimated cost and amount of Russian crude to import.
When asked about progress in the talks with Moscow, Milla Susilo, senior communications manager of Pertamina’s refinery and petrochemical arm PT Kilang Pertamina Internasional, told The Jakarta Post on Wednesday: “We cannot disclose that information yet.”
Read also: Pertamina still ‘studying’ plan to import Russian oil
