The United Kingdom has recently intensified its economic measures against Russia by imposing sanctions on significant individuals involved in the trade of Russian oil. This move aims to apply additional pressure on Moscow as peace negotiations continue regarding the ongoing conflict in Ukraine.

Details of the Sanctions

Prime Minister Keir Starmer described the latest measures as the UK’s “largest ever sanctions package” targeting oil tankers operating within Russia’s so-called shadow fleet. The sanctions specifically affect five Azerbaijani oil traders, including:

• Etibar Eyyub
• Tahir Garayev
• Ahmed Kerimov

This marks a notable escalation in the Western effort to disrupt the trade in Russian oil, with prior sanctions primarily directed at companies rather than individuals.

Context of the Sanctions

The overarching goal of the Western sanctions regime against Moscow has been to diminish the Kremlin’s oil revenues while allowing the flow of oil to continue. In response, Russia established a network of oil tankers, shipping companies, and traders designed to evade these rules.

The UK government has stated that Eyyub, Garayev, and Kerimov are linked to Coral Energy (now known as 2Rivers Group) and had benefited from their support for the Russian government. The sanctions also involve the inclusion of two other companies associated with Eyyub, namely Nord Axis Ltd and BX Energy.

Background on the Companies Involved

Coral Energy, founded by Garayev in 2010, was pivotal in the Russian oil sector. Interestingly, Nord Axis was established shortly before the full-scale Russian invasion of Ukraine in February 2022 and quickly emerged as a key player by acquiring Trafigura’s significant stake in the Vostok oil project.

The financial specifics of that transaction remain undisclosed, but Trafigura confirmed the transition involved a $5.8 billion non-recourse bank debt.

Recent Developments and Responses

In 2024, Kerimov and two other senior executives from Coral, Anar Madatli and Talat Safarov, executed a management buyout of the company, later rebranding it as 2Rivers Group. The UK had already sanctioned the new entity in December.

Responding to these sanctions, Kerimov stated, “The UK sanctions imposed, first on my company and now on me personally, are a grave and unjust action that fails to recognise the substantial reforms we have undertaken.” He emphasized that since 2022, the company has exited the Russian energy market in compliance with G7 price cap regulations.

As part of the sanctions, the UK has also placed restrictions on numerous oil tankers involved in transporting over $24 billion worth of crude since January 2024.