EU targets Russia’s shadow fleet with new sanctions

The list includes oil giants and shipping companies

The European Union has adopted its latest package of sanctions, directly targeting companies and individuals accused of assisting Moscow in circumventing Western restrictions on oil exports.

These illicit sales are crucial for funding Russia's ongoing war in Ukraine.

Despite 19 previous rounds of sanctions, Russia has largely adapted to the measures, continuing to sell millions of barrels of oil to countries such as India and China, albeit at discounted rates.

Much of this trade relies on a so-called 'shadow fleet' of vessels operating beyond the reach of the Western maritime industry.

The new EU sanctions prohibit citizens of the bloc from conducting business with the newly listed entities and individuals.

This move aims to significantly reduce their access to major shipping and insurance providers. In total, the EU has now sanctioned more than 2,600 individuals and companies.

Ukrainian troops have targeted alleged Russian shadow fleet ships and seized some vessels (Security Service of Ukraine)

According to the Council of the European Union and the EU's Official Journal, the latest measures specifically target nine individuals and entities supporting Russia's shadow fleet of oil tankers.

This includes businessmen linked to oil giants Rosneft and Lukoil, as well as various shipping companies that own and manage these vessels.

Among those named are Valery Kildiyarov, finance director of Litasco Middle East DMCC, a trading subsidiary of Lukoil, and three individuals – Anar Madatli, Talat Safarov, and Etibar Eyyub – connected to the trading firm Coral Energy, now known as 2Rivers Group.

Also among those targeted is Canadian-Pakistani oil trader Murtaza Lakhani, CEO of trading company Mercantile & Maritime.

"Through his companies, he enables shipments and export of Russian oil, notably from the Russian state-owned oil company Rosneft," said the listing in the EU's Official Journal.

"In particular, Murtaza Lakhani controls vessels transporting crude oil or petroleum products, originating in Russia or being exported from Russia."

The EU’s latest measures specifically target nine individuals and entities supporting Russia's shadow fleet of oil tankers, including businessmen linked to oil giants Rosneft and Lukoil (Associated Press)

Lakhani, Mercantile & Maritime, Litasco Middle East DMCC and 2Rivers Group did not respond immediately to a request for comment.

Lakhani, 63, has faced intense scrutiny since starting his career at global trader Glencore, which sent him to Baghdad as an agent during the Saddam Hussein-era.

He later moved to Iraq’s Kurdistan region, where he acted as a middleman between the oil ministry and international companies.

He set up Mercantile & Maritime Group, a mid-sized trading house with offices in Singapore and London, in 2014.

“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,” he told Russia's SolovievLive at the St Petersburg Forum in June.