Feb 20 • 18:03 UTC 🇱🇹 Lithuania 15min

FT uncovered Russia's oil smuggling network: total – more than 90 billion US dollars

A newspaper investigation revealed a network of 48 seemingly independent companies operating under different physical addresses, believed to be collaborating to obscure the origin of Russian oil from Kremlin-controlled Rosneft.

A recent investigation by a Lithuanian newspaper has identified a complex network of 48 ostensibly independent companies that were apparently working in concert to conceal the origins of Russian oil, particularly from the Russian state-controlled enterprise, Rosneft. This network was uncovered because all companies were utilizing a common private email server, suggesting coordinated operations. The implications of these activities reflect broader issues of compliance with international sanctions and the ongoing effects of geopolitical tensions surrounding Russian oil exports.

The need to obscure the true origin of Russian oil intensified after the United States imposed sanctions in October 2025 on Rosneft and Lukoil, the two largest oil exporters in Russia. This increased the importance of third-party territories for oil diversion, allowing entities blacklisted by sanctions to engage in trade without attracting attention. Since the sanctions were imposed, a previously unknown company, Redwood Global Supply, has emerged as the largest exporter of Russian oil, closely linked to a group of Azerbaijani businessmen with strong ties to Rosneft. This change showcases the evolving landscape of international oil trade amidst stringent sanctions.

Latvian Foreign Minister Baiba Bražė remarked on the implications of this smuggling network. The statement emphasizes the ongoing challenges that countries face in combating illicit oil trade and the need for robust measures to enforce sanctions effectively. It also highlights the potential for significant economic impacts tied to Russian oil exports, as illicit activities undercut international sanctions aimed at curbing the Kremlin's funding mechanisms.

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