UK Sanctions Azerbaijani Tanker and Trade Officials in Major Shadow Fleet Crackdown

The UK has announced a series of significant sanctions targeted at a state-owned Azerbaijani tanker and five Azerbaijani nationals with alleged involvement with a Singapore and UAE-based oil trading company supporting Russia’s energy sector.

The sanctions came on the 9th May, coinciding with Russia’s commemoration of the 80th anniversary of the Soviet Union’s victory over Nazi Germany.

A UK press release indicated that the government could eventually extend sanctions to as many as 100 oil tankers. These vessels, which have carried cargo valued at more than $24 billion since the beginning of 2024, are seen as key components in the financial machinery supporting the Russian regime. 

The press release stated:

“The shadow fleet operation, masterminded by [Russian President Vladimir] Putin’s cronies, is not just bankrolling the Kremlin’s illegal war in Ukraine - the fleet’s languishing vessels are known to be damaging critical national infrastructure through reckless seafaring in Europe”.

UK Prime Minister Sir Keir Starmer reiterated the national security threat posed by Russian activity in the energy sector, stating: 

“The threat from Russia to our national security cannot be underestimated, that is why we will do everything in our power to destroy his shadow fleet operation, starve his war machine of oil revenues and protect the subsea infrastructure that we rely on for our everyday lives”.

While details of the ship ownership were not explicitly provided by the UK, an investigation by the Organising Crime and Corruption Reporting Project (OCCRP) has shed light on the tanker’s origins. 

The ship, identified as Zangazur, is owned by the Azerbaijan Caspian Shipping Company. Financial records reviewed by the OCCRP confirmed that the Azerbaijani government holds 100% of the company’s shares. 

Shipping data shows that Zangazur frequents the Russian port of Primorsk, located west of Saint Petersburg, and the Turkish port of Nemrut, where Azerbaijan’s state-owned STAR oil refinery operates.

Additional context was provided by Global Witness, an advocacy group. Their data revealed that Azerbaijan’s STAR refinery has processed large volumes of Russian crude oil in 2024. In a July 2024 report, the group stated:

“The vast majority of STAR products imported by the EU this year have likely been made from Russian oil”. 

These imports, facilitated under a 2022 Memorandum of Understanding, saw Azerbaijan increase its gas supply to the EU, which would allegedly, as European Commission President Ursula Von der Leyen stated: “compensate for cuts in supplies of Russian gas and contribute significantly to Europe’s security of supply”.

In the same sanctions package, the five Azerbaijani nationals - Ahmed Kerimov, Talat Safarov, Anar Madatli, Tahir Garayev, and Etibar Eyyub - were linked to trading operations conducted under the names Coral Energy or 2Rivers Energy. 

Previously sanctioned in December 2024, this entity was accused of bypassing international restrictions by trading in Russian oil. In an October 2024 statement released via PR Newswire, Coral Energy asserted that it had disengaged from Russian market activities. 

The company clarified that Etibar Eyyub and Tahir Garayev had already severed ties with Coral Energy.

The latest sanctions continue the UK’s efforts to clamp down on illicit oil trading and protect the region’s energy infrastructure. Further stringent measures might be on the horizon in the ongoing geopolitical struggle over Russian oil revenues.
 

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