The European Union has expanded its sanctions list on entities connected to Russia’s oil trade, with a new round of measures aimed at traders and shipping networks accused of enabling Moscow to continue crude exports despite Western restrictions.
The new sanctions name oil traders Murtaza Lakhani and Etibar Eyyub, who, according to EU, were involved in facilitating Russian oil shipments that continue to generate revenue for the Kremlin amid the war in Ukraine. Since the invasion, Brussels has rolled out 19 sanctions packages, yet Russia has adjusted its trade routes and continues to sell large volumes of oil to buyers such as India and China, often at reduced prices, Reuters cited.
European officials say much of this oil is transported through a “shadow fleet” of tankers that operate beyond the reach of Western insurers and shipping regulators. The latest measures aim to disrupt these networks by banning EU citizens and companies from doing business with the individuals and firms listed, limiting their access to shipping services, insurance and finance.
With the latest additions, more than 2,600 individuals and entities are now subject to EU sanctions. According to the Council of the European Union and notices published in the EU’s Official Journal, nine individuals and organisations linked to the shadow tanker fleet have been targeted, including figures associated with Russian oil majors
Rosneft and Lukoil, as well as companies involved in owning or managing oil tankers.
Market analysts expect the EU to expand the list further in the coming days, potentially adding more than 40 vessels linked to Russia’s shadow fleet. If confirmed, this would push the number of sanctioned ships to around 600.
Moscow dismissed the new sanctions as ineffective. Russia’s Permanent Mission to the EU said the measures would ultimately harm EU citizens rather than Russia, and would fail to achieve their intended aims.
“We note with regret Brussels' inability to recognise a simple truth: 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 and is flawed,” the mission said in a statement quoted by Russian news agencies.
It added that the sanctions would deepen “the growing socio-economic problems and the declining standard of living for European citizens”.
Traders under scrutiny
One of the central figures named in the sanctions is Murtaza Lakhani, a Canadian-Pakistani oil trader and chief executive of Mercantile & Maritime Group. The EU said that companies under his control had enabled the shipment and export of Russian oil, including crude from the state-owned giant Rosneft.
“Through his companies, he enables shipments and export of Russian oil, notably from the Russian state-owned oil company Rosneft,” the EU’s Official Journal said.
“In particular, Murtaza Lakhani controls vessels transporting crude oil or petroleum products originating in Russia or being exported from Russia.”
Requests for comment sent to Lakhani, Mercantile & Maritime, Litasco Middle East DMCC and 2Rivers Group were not answered.
Lakhani, 63, runs Mercantile & Maritime Group, a mid-sized oil trading firm with offices in London and Singapore. His career began at global commodities trader Glencore, where he worked on Iraqi oil exports during the Saddam Hussein period. He later operated in Iraq’s Kurdistan region, helping facilitate oil sales independent of Baghdad by acting as an intermediary between the regional oil ministry and international energy firms.
That work brought him into close contact with Rosneft, which he helped secure oil and gas agreements in Kurdistan. He worked alongside Rosneft chief executive Igor Sechin, including during deal signings at Russia’s flagship economic forum in St Petersburg, Reuters reported.
The relationship later extended into investment. Lakhani partnered with oil trader Vitol to acquire a 5% stake in Vostok Oil, Rosneft’s largest oil project in decades, located in the Arctic.
“This country (Russia) is the largest resource country in the world. Hampering it is a very short-term effect, not a long-term goal for anybody. They will always need Russia,” he said during an appearance on Russia’s SolovievLive at the St Petersburg Forum in June.
The EU has also sanctioned Valery Kildiyarov, who serves as a director at Lukoil’s trading subsidiary Litasco Middle East DMCC, which is already under sanctions, and as a manager at another Lukoil-linked trading firm, Alghaf Marine, based in Dubai.
Etibar Eyyub was listed alongside Anar Madatli and Talat Safarov due to their links with Coral Energy, a trading house that was later renamed 2Rivers Group, the Council of the European Union said.
Coral Energy had risen to become one of the leading traders of Russian oil. Following a management buyout and rebranding in 2024, 2Rivers said it had largely stopped trading Russian oil in 2023 and exited its final contract in early 2024.
After sanctions were imposed by the UK and the EU, the company said it ceased all trading activities in June and formally wound up the business in August.
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