An IT error has unveiled a suspected smuggling operation that has allegedly trafficked over $90 billion worth of Russian oil, playing a pivotal role in financing the Kremlin’s military actions in Ukraine.
An investigation revealed that 48 companies, seemingly operating independently from various locations, are working in unison to mask the origins of oil from Rosneft, a major state-controlled entity in Russia. This network was uncovered when they were found to all share a single private email server.
The tactic of routing oil through intermediary entities serves to obscure any blacklisted companies associated with transactions. The need to conceal where Russian crude comes from escalated in October 2025, when the United States slapped sanctions on Rosneft and Lukoil, the largest oil exporters in Russia.
Since the sanctions were enacted, a lesser-known entity in this network, “Redwood Global Supply,” has emerged as the top exporter of Russian crude, associated with Azeri businessmen closely linked to Rosneft.
Latvia’s foreign minister, Baiba Braže, criticized these smugglers, saying they complicate the enforcement of price caps on oil by making it difficult to ascertain the actual prices in transactions. “This is why the entire network needs to face sanctions to protect the lives of Ukrainians,” she added.
Three EU officials indicated that the findings could provide a basis for new sanctions, stating that some entities in this ring were already on their radar. They noted that fresh tactics from new actors are emerging to circumvent existing measures. David O’Sullivan, the EU sanctions envoy, stated, “We intend to make it harder, less predictable, and more costly to bypass our sanctions.”
Through additional analysis, investigators identified 442 websites linked to the private server, showing connections to companies involved in transporting Russian oil.
For example, Foxton FZCO, based in Dubai, was identified as having purchased $5.6 billion worth of oil, matching with a domain of the same name. Similarly, Advan Alliance, involved in selling Russian oil to India for $1.5 billion, was traced back to its domain.
The total volume of oil implicated in the trades exceeds $90 billion, though it’s likely the actual amount is much larger due to incomplete customs records. Many of the companies have short operational lifespans, often averaging around six months, making oversight challenging. Eight entities in the network are already sanctioned by the EU, US, or UK.
Much of the network is connected to Coral Energy, founded by the Azeri businessman Tahir Garayev, who himself is under sanctions.
A significant figure is Etibar Eyyub, also linked to Rosneft. Eyyub was placed under sanctions last year for supposedly facilitating the export of Russian oil while concealing its origin. In November 2024, over 80% of Rosneft’s exported oil was linked to this network.
Garayev and Eyyub were said to have wielded substantial influence in their trading activities, with indications that Eyyub was the primary force driving operations.
The relationship between these companies is intricate but seems to involve distinct roles in buying and selling cargoes, often obscured through third-party routes.
Many entities lack contact details, complicating efforts to trace them, and some are based in the UAE.
Kpler, a data analytics platform, reported a notable decline in exports from Lukoil and Rosneft post-sanctions, now largely filled by Redwood Global Supply, which recently faced UK sanctions.
Current and former Russian energy executives have noted how sanctioned exporters adapt by rerouting supplies through non-sanctioned entities.
The total reach of this operation remains uncertain. An analysis suggested that nefarious shipping practices are regularly employed to obscure the true origins and movements of oil, with various companies potentially doubling as part of a broader network.
Comments were sought from the involved companies, but the response from Garayev was one of denial regarding any key role in smuggling operations.
Eyyub could not be reached for comment but previously described the sanctions against him as baseless. The Kremlin’s Rosneft was also approached for a statement.