Britain Uncovers Azerbaijani Key Figures in Russia’s Covert Oil Trade Network

British officials have pinpointed two Azerbaijani citizens with strong connections to Russia’s state-run oil entity, Rosneft, as significant figures in an extensive network that has trafficked billions of dollars worth of Russian oil in violation of Western sanctions.

In a report released on Wednesday, the UK’s National Crime Agency (NCA) identified Etibar Eyyub and Tahir Garaev as pivotal players in what it describes as an increasingly intricate “shadow trade” operation aimed at concealing the origins of sanctioned Russian crude oil.

Both individuals are reportedly closely linked to Igor Sechin, the CEO of Rosneft and a long-time ally of President Vladimir Putin, who himself is subject to sanctions imposed by the U.S., EU, Canada, and other Western nations.

The report states that Eyyub and Garaev have received “privileged access” to Rosneft’s oil products, allowing them to trade more Russian crude in 2024 than any other entity.

According to the NCA, their activities depend on a global fleet of over 100 aging tankers that utilize various deceptive tactics to mask the cargo’s Russian origin.

These methods involve routinely disabling onboard tracking systems, conducting cargo transfers at sea to obscure the oil’s source, and changing national flags to avoid detection, as noted in the NCA report.

The NCA also indicated that the operation to circumvent sanctions is organized around two company clusters known among traders and brokers as the “blue” and “red” groups.

The “blue” group operates under a guise of legitimacy, partnering with Western banks and commodity exchanges to secure financing on favorable terms. Leading firms in this segment, 2Rivers DMCC and 2Rivers PTE, faced sanctions from the UK government in December 2024.

In contrast, the “red” group directly manages the transportation of Russian oil using companies with deliberately obscure ownership structures and a network of interchangeable shell corporations. Their tankers often engage in offshore transfers to other vessels and mix Russian oil with other grades to further conceal its origins.

In May, UK officials expanded sanctions targeting five Azerbaijani individuals, including Garaev and Eyyub, along with the companies BX Energy, Romarine, and Nord Axis. Additionally, more than 100 tankers associated with the network were blacklisted.

British authorities assessed that the vessels controlled by Eyyub and Garaev constitute the core of what they refer to as Putin’s “shadow fleet,” responsible for transporting cargo valued at over $24 billion in 2024.

Authorities identified Nord Axis as a crucial logistical center within the “red” network.

These findings provide insight into how Moscow continues to maneuver its energy exports despite extensive sanctions implemented following its 2022 invasion of Ukraine.

Moreover, the report highlights the challenges faced by Western governments in enforcing restrictions on Russian oil and the Kremlin’s increasing dependence on covert intermediaries operating in legal gray areas.