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View all search resultsRussian oil roulette
For Indonesia to turn to Russian oil now risks the wrath of the West.
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S
tate oil and gas company Pertamina is considering buying Russian crude oil at hugely discounted prices to help ease the current supply shortages at home caused by high world oil prices. At a hearing with the House of Representatives on Monday, Pertamina CEO Nicke Widyawati said the plan was being coordinated with the Foreign Ministry and Bank Indonesia.
“We see an opportunity to buy from Russia at better prices,” NIcke told the hearing.
What Pertamina sees as an opportunity, others may see as opportunism.
Indonesia must tread carefully before Pertamina goes ahead with the plan. The last thing we want is to be accused of busting the economic sanctions and embargo against Russia that have been imposed by the United States and its allies to force Moscow to end its invasion of Ukraine.
A related second war is brewing following on the Russia-Ukraine war. This is the economic war that is being waged by the West against Russia to punish Moscow for the invasion.
US President Joe Biden is determined to make it economically costly for Russia if it continues the war in Ukraine, and in a speech last week warned China, and by extension other countries that are not joining the sanctions, of dire economic consequences if it provides “material support” to Moscow. What this means is open to interpretation.
If Indonesia professes to be neutral in the Russia-Ukrainian war, then it should also take the same stand in the economic war. Indonesia has refused to join the economic measures against Russia but breaking the sanctions would clearly put Indonesia on Moscow’s side.
