Topic analysis

Revealed: UK oil refinery owner moved Russian loans to offshore subsidiary where sanctions did not apply

An investigation by The Guardian and SourceMaterial found that Essar Energy, owner of the UK’s Stanlow refinery, transferred billions of dollars in loans from Kremlin-controlled VTB Bank—labeled "Putin’s piggy bank" and under Western sanctions—from Cyprus to a Mauritius subsidiary in the months following Russia’s 2022 invasion of Ukraine, a move experts and MPs argue raises red flags of potential sanctions circumvention. Cypriot authorities are reviewing the transaction for possible EU sanctions violations, while Essar asserts it acted in full compliance with all applicable laws, having obtained approval from Cypriot authorities and relying on expert legal advice.