EU Expands Sanctions Against Key Figures in Russia's Oil Trading Network

The European Union has imposed new sanctions targeting nine individuals and entities involved in supporting Russia's shadow fleet of oil tankers.

On Monday, the EU adopted fresh sanctions against Russian oil interests, specifically targeting traders Murtaza Lakhani and Etibar Eyyub for their role in helping Moscow circumvent Western sanctions on crude exports that finance Russia's war in Ukraine.

Despite implementing 19 packages of sanctions thus far, Moscow has successfully adapted to most measures and continues to sell millions of barrels of oil to India and China, though at discounted rates compared to global prices. This trade primarily relies on a so-called shadow fleet of vessels operating outside Western maritime regulations.

The latest EU sanctions prohibit European citizens from conducting business with the listed companies and individuals, effectively limiting their access to shipping and insurance providers. In total, the EU has now listed over 2,600 individuals and companies.

According to the Council of the European Union and the EU's Official Journal, the sanctions target individuals connected to oil companies Rosneft and Lukoil, as well as shipping companies that own and manage tankers within Russia's shadow fleet.

Analysts expect the EU to list more than 40 additional ships in Russia's shadow fleet this week, bringing the total to approximately 600 vessels.

Among those sanctioned is Canadian-Pakistani oil trader Murtaza Lakhani, CEO of trading company Mercantile & Maritime. The EU's Official Journal stated, "Through his companies, he enables shipments and export of Russian oil, notably from the Russian state-owned oil company Rosneft," adding that "Murtaza Lakhani controls vessels transporting crude oil or petroleum products originating in Russia or being exported from Russia."

Lakhani, Mercantile & Maritime, Litasco Middle East DMCC, and 2Rivers Group did not respond when asked for comment.

The 63-year-old Lakhani operates the mid-sized trading house Mercantile & Maritime Group with offices in Singapore and London. He began his career at global trader Glencore, where he worked on Iraqi oil exports during Saddam Hussein's regime before relocating to Iraq's Kurdistan region. There, he served as an intermediary between the oil ministry and international companies for oil sales independent of Baghdad.

During this period, Lakhani facilitated Russian state-controlled energy giant Rosneft in signing oil and gas deals in Kurdistan, working closely with Rosneft CEO Igor Sechin, including participating in signing ceremonies at Russia's premier economic forum in St Petersburg.

Building on this relationship, Lakhani partnered with top oil trader Vitol to invest in a 5% stake in Rosneft's largest oil project in decades, Vostok Oil in the Arctic. At the St Petersburg Forum in June, Lakhani stated, "This country (Russia) is the largest resource country in the world. Hampering it is a very short-term effect, not a long-term goal for anybody. They will always need Russia."

The EU has also listed Valery Kildiyarov, a director of sanctioned Lukoil trading subsidiary Litasco Middle East DMCC and a manager at another Lukoil trading business, Alghaf Marine, based in Dubai.

The EU's listing of Eyyub along with Anar Madatli and Talat Safarov relates to their connections to trading firm Coral Energy, which was renamed 2Rivers Group, according to the Council of the European Union.

Coral Energy had grown to become one of the top Russian oil traders. After a management buyout and name change in 2024, 2Rivers claimed the company had largely ceased Russian oil trading in 2023 and terminated its last contract in early 2024.

Following UK and EU sanctions, the company stated it halted all trading activities in June before dissolving the business in August.