FT exposes $90bn Russian oil smuggling network

AN investigation by the Financial Times (FT) has uncovered an elaborate network of nearly 50 companies working together to obscure the origin of Russian crude oil, facilitating shipments worth at least $90 billion.

The scheme came to light following an IT oversight. The 48 entities identified in the probe were found to be using a single private email server, suggesting coordinated back-office operations despite appearing unrelated on paper.

According to the report, the network includes companies and individuals connected to Rosneft, Russia’s largest oil producer, which is state-controlled. The operation allegedly focused on disguising the source of Russian crude exports, particularly cargoes linked to Rosneft.

The $90 billion estimate represents a conservative calculation by the FT, which noted that the true value of oil moved through the network is likely far higher.

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Traders used third-party intermediaries to conceal the involvement of blacklisted entities and obscure the prices paid for shipments. The incentive to hide the origins of Russian crude intensified in October 2025, when the United States imposed sanctions on Rosneft and Lukoil, the country’s two largest exporters.

Following those sanctions, a previously little-known company within the network, Redwood Global Supply, emerged as the largest exporter of Russian crude. The firms are reportedly tied to a group of Azerbaijani businessmen with close links to Rosneft.

Latvia’s Foreign Minister, Mr Baiba Braže, said the activities of such smugglers undermine enforcement of the oil price cap and make it difficult to determine the real transaction prices. She argued that the broader ecosystem supporting the trade should face sanctions.

Echoing concerns about sanctions evasion, EU sanctions envoy David O’Sullivan noted that increasingly complex structures and new actors are emerging to bypass restrictions, prompting efforts to tighten enforcement measures.

The FT traced 442 web domains to a single email server – ‘mx.phoenixtrading.ltd’ – indicating shared infrastructure. By cross-referencing domain names with Russian and Indian customs records, the newspaper linked multiple entities to documented oil trades exceeding $90 billion.

Customs data suggest many of the companies operate for only about six months before being abandoned, complicating sanctions enforcement. At least eight of the identified entities are already under sanctions by the EU, US or UK.