EU cracks down on Russian oil traders accused of aiding shadow fleet operations

The European Union has unveiled a fresh package of sanctions targeting businessmen and companies accused of helping Russia circumvent Western restrictions on crude exports through its so‑called “shadow fleet” of oil tankers. The measures, adopted by EU foreign ministers in Brussels on Monday, mark the bloc’s latest attempt to choke off Moscow’s energy revenues that continue to fund its war in Ukraine.

Key Details of the Sanctions

• Nine individuals and entities were added to the EU’s sanctions list, including prominent oil traders and shipping operators linked to Russian state-owned giants Rosneft and Lukoil.
• Among those named is Murtaza Lakhani, a Pakistani-Canadian trader accused of facilitating Russian crude exports despite Western restrictions. Lakhani has denied wrongdoing, calling the sanctions “unfounded” and announcing his resignation from management positions in his companies.
• Another sanctioned figure is Etibar Eyyub, an Azerbaijani trader alleged to have played a role in concealing the origins of Russian oil shipments.
• The EU Council stated that the shadow fleet engages in “irregular and high-risk shipping practices”, including disguising the origin of petroleum products and operating outside established maritime safety norms.

Broader Context

The shadow fleet—estimated to comprise more than 400 vessels—has become a crucial lifeline for Russia’s oil exports, particularly to markets in Asia such as India and China. These ships often operate without Western insurance or classification, making them difficult to monitor and raising concerns about environmental and safety risks.

Despite 19 previous rounds of EU sanctions, Russia has adapted by selling oil at discounted rates and relying on opaque networks of traders and shipping firms. Brussels hopes the new measures will further restrict Moscow’s ability to generate revenue from energy exports, which remain a cornerstone of its economy.

Impact and Reactions

• The sanctions prohibit EU citizens and companies from conducting business with the listed individuals and entities, effectively cutting them off from European shipping, insurance, and financial services.
• Officials in Brussels emphasized that the move is part of a wider strategy to curb Russia’s war financing while also addressing hybrid threats such as disinformation and cyberattacks.
• Russia has not yet issued an official response, but analysts expect Moscow to continue seeking alternative routes and partners to sustain its oil trade.

Looking Ahead

The EU has now sanctioned more than 2,600 individuals and companies since the start of Russia’s full-scale invasion of Ukraine in 2022. While the effectiveness of these measures remains contested, European leaders insist that tightening restrictions on the shadow fleet is essential to closing loopholes that allow Moscow to profit from global energy markets.

The latest sanctions underscore Brussels’ determination to confront Russia’s sanction-busting tactics and highlight the growing complexity of enforcing restrictions in a globalized oil trade.