EU Sanctions Oil Traders Linked to Russia’s Shadow Fleet

The European Union has approved a new round of sanctions targeting oil traders and companies accused of helping Russia bypass Western restrictions on crude exports that help fund the war in Ukraine. The measures form part of the EU’s 19th sanctions package since the invasion began.

Despite extensive sanctions, Russia continues to sell millions of barrels of oil to countries such as India and China, often at discounted prices. Much of this trade relies on a so-called “shadow fleet” of tankers operating outside Western shipping, insurance and regulatory systems.

The latest measures ban EU citizens from doing business with the sanctioned individuals and companies, limiting their access to shipping services and insurance. More than 2,600 people and entities have now been sanctioned by the bloc.

Among those targeted is Canadian-Pakistani oil trader Murtaza Lakhani, chief executive of Mercantile & Maritime. EU authorities said his companies facilitated the transport and export of Russian oil, including crude from state-owned producer Rosneft, and controlled vessels carrying Russian-origin oil products. Lakhani and related companies did not respond to requests for comment.

The EU also sanctioned Valery Kildiyarov, a director at Lukoil trading subsidiary Litasco Middle East DMCC, and Etibar Eyyub, along with two other individuals linked to trading firm Coral Energy, later renamed 2Rivers Group. Coral Energy grew into a major trader of Russian oil before a management buyout in 2024. The company later said it largely exited Russian oil trading in 2023, ended its final contract in early 2024, and shut down following EU and UK sanctions.

Analysts expect the EU to add more than 40 vessels to its shadow fleet blacklist this week, potentially raising the total number of sanctioned ships to around 600.