The European Union on Monday adopted a new round of sanctions aimed at curbing Russia’s oil revenues, targeting key traders and entities accused of helping Moscow bypass Western restrictions on crude exports that help fund its war in Ukraine.
Among those sanctioned are oil traders Murtaza Lakhani and Etibar Eyyub, whom the EU alleges played significant roles in facilitating the shipment and export of Russian oil despite existing sanctions. With this move, the EU has now imposed 19 packages of sanctions since the invasion of Ukraine.
Despite these measures, Russia continues to sell millions of barrels of oil—primarily to India and China—often at discounted prices. A substantial portion of these exports is transported via a so-called “shadow fleet” of tankers operating outside the Western maritime and insurance systems.
The latest sanctions prohibit EU citizens and companies from conducting business with the listed individuals and firms, effectively limiting their access to shipping, financing, and insurance services. In total, the EU has now sanctioned over 2,600 individuals and entities.
According to the Council of the European Union and its Official Journal, nine individuals and entities linked to Russia’s shadow tanker fleet have been added to the list, including businessmen associated with Rosneft and Lukoil, as well as shipping companies that own or manage oil tankers. Analysts expect the EU to designate more than 40 additional vessels this week, potentially raising the total number of sanctioned shadow fleet ships to around 600.
Russia’s Permanent Mission to the EU dismissed the new measures as ineffective, arguing they would harm EU citizens more than Russia. “If the same action is repeated over and over and does not produce the desired result, it means the original strategy fundamentally does not work,” the mission said, warning of rising socio-economic pressures within the EU.
Key Individuals Targeted
The EU has accused Murtaza Lakhani, CEO of Mercantile & Maritime Group, of enabling shipments of Russian oil, particularly from state-owned giant Rosneft, and of controlling vessels transporting Russian-origin crude and petroleum products. Lakhani, a Canadian-Pakistani national, runs a mid-sized trading firm with offices in Singapore and London. Neither he nor his companies responded to requests for comment.
Lakhani has long-standing ties to Russia’s energy sector, having worked closely with Rosneft CEO Igor Sechin on oil and gas deals in Iraq’s Kurdistan region. He also partnered with global trader Vitol to acquire a stake in Rosneft’s flagship Vostok Oil project in the Arctic.
The EU also sanctioned Valery Kildiyarov, a director at Lukoil’s trading subsidiary Litasco Middle East DMCC, as well as Etibar Eyyub, Anar Madatli, and Talat Safarov for their links to trading firm Coral Energy, later renamed 2Rivers Group. Coral Energy had grown into one of the largest traders of Russian oil before a management buyout in 2024.
2Rivers Group has stated that it largely ceased trading Russian oil in 2023, exited its final contract in early 2024, and halted all trading activities in June before dissolving the business in August, following UK and EU sanctions.
The EU says the latest measures underscore its determination to close loopholes in the sanctions regime and further restrict Russia’s ability to finance the war through energy exports.
