Financial Times Uncovers Suspected $90 Billion Russian Oil Smuggling Network

FT Investigation Reveals Extensive Sanctions Evasion

The Financial Times (FT) has published an investigation uncovering a suspected Russian oil smuggling network that has reportedly transported crude valued at more than $90 billion. The extensive operation utilized a sophisticated web of ostensibly independent companies to obscure the true origin of Russian oil, primarily from state-controlled giant Rosneft. The findings, released on February 20, 2026, underscore the persistent challenges in enforcing international sanctions against Russia.

Modus Operandi: A Network of Shell Companies and Shared Infrastructure

The network's discovery was attributed to an 'IT blunder' or 'accidental email server misconfiguration,' which revealed that 48 seemingly independent companies, operating from various physical addresses, all relied on a single private email server: mx.phoenixtrading.ltd. The FT identified 442 web domains linked to this shared server, matching them with companies listed in Russian and Indian customs records as participants in the transport of Russian oil.

Key tactics employed by the network to bypass sanctions and conceal the oil's origin include:

• The use of numerous intermediaries and shell companies.
• Companies often had a short operational lifespan, averaging around six months, complicating enforcement efforts.
• Describing crude under generic terms such as 'export blend' rather than specific grades to avoid traceability.
• Routing shipments through third countries, notably the United Arab Emirates (UAE).
• Leveraging Russia's 'shadow fleet' of aging tankers, which often operate under opaque ownership structures or false flags.
• The potential use of falsified certificates of origin and other shipping documentation.

The investigation found that in November 2024, over 80% of Rosneft's seaborne oil exports were reportedly routed through companies identified within this network.

Key Players and Financial Scale

The FT's investigation highlighted several entities and individuals allegedly central to the network:

• Coral Energy, founded by Azerbaijani businessman Tahir Garayev, who is currently under UK sanctions.
• Etibar Eyub, described by EU officials as a close associate of Rosneft CEO Igor Sechin, was sanctioned by the UK for his involvement with Coral and Nord Axis.
• Redwood Global Supply, a UAE-registered firm, reportedly became Russia's largest oil exporter after the US sanctioned Rosneft in October 2025. Redwood was subsequently sanctioned by the UK in December 2025.
• Other companies mentioned include Dubai-based Foxton FZCO, which exported $5.6 billion in Russian oil, and Advan Alliance, which sold $1.5 billion into India.

The total value of crude transported through this network is estimated at a minimum of $90 billion, though the FT suggests the actual figure could be considerably higher due to incomplete data.

International Reaction and Implications

The revelations have drawn significant attention from international bodies. EU officials have indicated that the detailed findings could serve as a basis for new sanctions. On February 21, 2026, Ukraine announced new sanctions targeting 225 captains of vessels involved in transporting Russian oil, emphasizing the global effort to curb Russia's ability to fund its ongoing conflict. This extensive smuggling operation underscores the resilience of Russia's energy sector in circumventing Western restrictions and its central role in financing the Kremlin's war efforts.