A recent IT error has uncovered a significant oil smuggling network that has allegedly moved at least $90 billion worth of Russian oil, which is believed to play a key role in financing Russia's ongoing war in Ukraine. The report details how 48 seemingly independent companies are operating from different locations but working in unison to obscure the oil's origins, particularly that sourced from Rosneft, which is controlled by the Kremlin. This elaborate scheme was brought to light due to their shared use of a single private email server, indicating a deeper level of coordination among these firms.

The network employs tactics such as routing oil through intermediaries, which allows them to mask the involvement of sanctioned entities in transactions, thereby complicating the traceability of oil supplies. This practice has become more crucial since the imposition of U.S. sanctions in October 2022 on Rosneft and Lukoil, the two largest oil exporters in Russia. The need to hide the exact origins of Russian oil intensified following these sanctions, leading to increased activity within the smuggling network as they sought to maintain their operations and evade detection.

One particularly notable company that has surfaced within this network is Redwood Global Supply, which has quickly become the largest player since the sanctions were enacted. The revelations from this report are significant as they not only expose vulnerabilities in the global oil market but also highlight how financial employment strategies may unknowingly support state-sponsored military activities, raising further questions about international compliance with sanctions and the measures needed to combat such illicit operations.