EU tightens sanctions net on shadow fleet facilitators
THE EU has targeted a series of key enablers of the shadow fleet* in its latest round of sanctions against Russia, adopted on Monday.
The targets include the high-profile oil trader Murtaza Lakhani for allegedly assisting Russia’s state-owned oil company Rosneft in exporting crude via the companies and ships he controls.
Lakhani, a veteran oil trader who has conducted businesses in Russia, Venezuela and Iraq, has repeatedly denied any involvement in Russian oil movements.
The Financial Times last month reported that Lakhani had been involved in the supply of Russian oil with three companies incorporated in the United Arab Emirates since 2022.
A Bloomberg News investigation in 2023 documented how Lakhani, a Karachi native who was raised in England and Canada, played a central role in Russia’s global oil business.
In both cases Lakhani stated that neither he nor any business in which he has an interest had been engaged in trading Russian oil.
In October 2023, when approached by Lloyd’s List, Lakhani’s lawyers stated: “Neither Mr Lakhani nor any business in which he has an interest, whether direct or otherwise, is trading in any Russian oil or oil products. In fact, as he has made clear publicly, his companies stopped trading or shipping Russian oil in accordance with the introduction of sanctions (including G7 and US sanctions) and this was a complete cessation of all trade in Russian oil.”
In its latest sanctions, published on Monday, the EU accused 63-year-old Lakhani of involvement in an economic sector that provided “a substantial source of revenue” to the Russian government.
“Through his companies, he enables shipments and export of Russia oil, notably from the Russian state-owned oil company Rosneft,” the EU said in official documents. “In particular, Murtaza Lakhani controls vessels transporting crude oil or petroleum products, originating in Russia or being exported from Russia, while practising irregular and high-risk shipping practices.”
Lloyd’s List has approached Lakhani’s lawyers for comment.
According to a statement issued to both the FT and Bloomberg, Lakhani described the EU’s designation as “unfounded”. He is also understood to have stepped down from all managerial positions within the companies he owns, including Mercantile & Maritime Group, which he founded in 2015.
The EU sanctioned five individuals and four entities in total on Monday, accusing them all of supporting Russia’s shadow fleet and its value chain.
The listed individuals are all businessmen linked, directly or indirectly, to major Russian state-owned oil companies Rosneft and Lukoil, the EU Council explained.
In addition to Lakhani, Etibar Eyyub, Valery Kildiyarov, Talat Safarov and Anar Madatli were also designated.
Azerbaijani citizen Etibar Eyyub had already been sanctioned by the UK earlier this year having been identified as owning or controlling Coral Energy Group, Nord Axis, 2Rivers Group and BX Energy, all of which have been carrying on business in the Russian energy sector.
2Rivers Group, a UAE-based oil-trading company previously known as Coral Energy, has been managed by shareholders Talat Safarov, Ahmed Kerimov and Anar Madatli since 2024.
It is Etibar Eyyub, however, who founded and runs the network of companies that all link back to Coral Energy, which was among a clutch of traders that stepped in to handle millions of barrels of Russian oil following the invasion in Ukraine.
According to the EU, 2Rivers Group continues to enable shipments and exports of Russian oil, notably from Rosneft, by concealing the actual origin of the oil.
In particular, 2Rivers Group controls a large proportion of the vessels in Russia’s shadow fleet, explained the EU, adding that regardless of its change in name and ownership, “2Rivers Group continues to operate the same network as Coral Energy, which includes associated entities such as Nord Axis and Bellatrix”.
Messages sent directly to Talat Safarov by Lloyd’s List have gone unanswered.
In addition to targeting individuals behind the shadow fleet, the EU has started targeting the flow of vessels and companies moving between jurisdictions to escape scrutiny.
The latest sanctions include listings for Nova Shipmanagement and Citrine Marine, two UAE companies that manage and own, a fleet of 14 mainly Oman-flagged vessels.
The majority of these vessels have already been sanctioned individually. However, the designation of the companies behind them indicates that the EU is now tracking the flow of former Sovcomflot-owned vessels that have been quietly moving from Dubai-registered companies into Oman in recent months.
Various tankers previously controlled by Sovcomflot but now owned by Citrine Marine are managed by Nova Shipmanagement; both share the same address in the UAE.
Lloyd’s List has tracked more than 30 ships that have been moved to Oman-registered companies and special purpose vehicles so far this year. Most retain links to Russian interests and many are understood to retain Russian beneficial ownership.
Ships previously registered to companies that were ultimately owned by Sovcomflot, Fesco, Volga Shipping and Prime Shipping, have all moved to Oman-registered companies this year.
The EU also added Vietnam-based Hung Phat Maritime Trading and Russian outfit SeverTransBunker Co over their connections to ships moving Russian oil.
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