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

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

Summary

Essar, the Indian-owned company that owns the UK’s Stanlow oil refinery, stopped importing Russian oil after Russia invaded Ukraine in 2022. However, investigations show Essar moved large loans from a Russian bank under sanctions into an offshore subsidiary in Mauritius, where sanctions did not apply, raising concerns about possible sanctions avoidance.

Key Facts

  • In March 2022, workers at Ellesmere Port in England refused to unload Russian oil linked to Essar’s Stanlow refinery.
  • Essar claimed it stopped all imports of Russian fuel soon after the Ukraine invasion.
  • Essar moved billions of dollars in loans from the Russian state bank VTB from Cyprus to Mauritius.
  • Mauritius was used because EU and UK sanctions did not apply there.
  • The loans were connected to Essar’s UK arm, Essar Energy.
  • Cyprus authorities are investigating whether moving loans violated EU sanctions rules.
  • Essar said it followed UK sanctions laws and got legal advice.
  • Essar has strong financial ties to Russia, including a $13 billion investment by Russian state oil company Rosneft in 2017.
  • Stanlow refinery supplies fuel to many UK vehicles and airports, making it strategically important.
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