Weighing the Costs and Benefits of Siberian Oil

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TEMPO.CO, Jakarta - The government’s decision to import oil from Russia runs counter to the actions of the United States and European countries, which have introduced a new round of sanctions. The Council of the European Union, for example, announced that it had extended its economic sanctions for another year, through July 31, 2027.

“The EU will keep the current measures in place and stands ready to take additional measures as long as the Russian Federation continues its illegal actions and violations of the fundamental rules of international law, including, in particular, the prohibition on the use of force,” the Council of the European Union said in a statement on Thursday, June 25, 2026, as quoted on its website.

The extension followed a decision by the Council of the European Union on June 18-19, 2026. At that meeting, EU leaders agreed to prolong economic sanctions against Russia in response to its military aggression against Ukraine. The sanctions cover trade, finance, energy, and technology, including a ban on imports or transfers of Russian crude oil and certain petroleum products into the European Union.

Meanwhile, on Tuesday, July 14, 2026, US senators introduced a bill imposing new sanctions on Russia. The proposal also includes tariffs of up to 100 percent on the five largest buyers of Russian crude oil and natural gas, including China and India. However, the draft legislation exempts countries that import less than 15 percent of Russia’s total natural gas exports, “Including countries that have taken significant steps to reduce those imports,” a Senate aide told CNN.

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