“Shadow” Russian oil flow to Europe via Azerbaijan: the new UK sanctions explained

UK sanctions hit Azerbaijan

Azerbaijani tanker Zangezur, two companies, and five businessmen are included in the new UK sanctions package announced in May against Russia. They are accused of involvement in the “shadow” delivery of sanctioned Russian oil to European markets.

Azerbaijani authorities have not yet commented on the decision.

The UK sanctions target nearly 100 oil tankers from Russia’s “shadow fleet.” Among those affected are the frozen assets of Azerbaijani directors of the oil trading company Coral Energy Group, also known as 2Rivers Group.

Documents note that Coral Energy Group operates in the energy sector, which is of strategic importance to the Russian government.

This is the UK’s second sanctions package against 2Rivers Group; the first was introduced in December 2024.

The UK government named Ahmed Karimov, Tahir Garaev, Anar Madatli, Talat Safarov, and Etibar Eyub, stating they “benefited from or supported the Russian government.”

The UK government presented the new sanctions as a major step against the “shadow fleet” funding Russia’s war in Ukraine. A statement from Prime Minister Keir Starmer’s office said:

“This is a blow to the shadow oil network controlled by Putin’s inner circle. These oil sales provide the Kremlin with funds to continue its illegal war.”

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The Azerbaijani tanker Zangezur is prominently featured on the UK sanctions list

According to the Caspian Shipping Company website, 100 percent of the shares of ASCO, the owner of this tanker, belong to the Azerbaijani government.

It is known that over the past year, the ship visited the Russian port of Primorsk 11 times and the Turkish port of Nemrut six times, where the STAR oil refinery is located.

Import of Russian-Origin Fuel to the EU from Azerbaijan’s STAR Refinery

One of the key targets in the UK sanctions list is the STAR oil refinery in western Turkey, owned by the Azerbaijani state.

In July 2024, the human rights group Global Witness reported that the Azerbaijani state-owned STAR refinery was receiving large volumes of Russian crude oil —

which was then exported to the European Union.

According to Global Witness, EU imports of Russian-origin fuel from STAR surged in the first quarter of 2024, increasing by 40 percent compared to the same period in 2022, the year Russia invaded Ukraine.

In the first three months of 2024, Azerbaijan exported 1.2 million tons of oil products to the EU – 90% of which had been refined from Russian crude.

“Azerbaijan was expected to replace Russia in supplying oil products to the West. Instead, it has become an open backdoor for Putin’s crude into Europe. This trade circumvents EU sanctions, and the Azerbaijani regime is profiting billions,” said Global Witness spokesperson Jonathan Noronha-Gant.

“These facts call into question Azerbaijan’s energy diplomacy. The country is becoming a loophole for evading Western sanctions on Russian oil.”

The situation also raises serious ethical concerns for Western nations.

For instance, around 10% of STAR’s output was shipped to the EU on tankers chartered by BP — even though in 2022, BP stated it would “not purchase aviation fuel made wholly or partly in Russia.”

About sanctioned companies BX Energy and Nord Axis LTD

The UK sanctions list also includes two Azerbaijani companies — BX Energy and Nord Axis LTD.

According to investigative group OCCRP, both companies are registered in Hong Kong and are controlled by other firms based in Dubai. Azerbaijani businessman Etibar Eyub, who appears on the sanctions list, is linked to both companies.

“A warning to Azerbaijan: attempts to bypass sanctions on Russia carry serious consequences”

Independent analyst Maximilian Hess describes the UK sanctions as a “warning shot” amid Azerbaijan’s close energy ties with the West:

“This is a clear signal that if Azerbaijan continues attempts to circumvent sanctions on Russia, its diplomatic standing and overall economy could face serious risks.”

No reaction from official Baku — silence as consent?

More than a week has passed since the sanctions were announced, but Azerbaijan’s Foreign Ministry, state oil company SOCAR, the Caspian Shipping Company, and state news agency AZERTAC have made no statements or comments.

Some analysts interpret this silence as an attempt by Baku to “cool tensions” — neither protesting nor responding.

Others see it as a “strategy of trivialization,” aiming to portray the sanctions as insignificant.

In both cases, the result is a lack of transparent information for both domestic and international audiences.

Is Azerbaijan’s energy cooperation with Europe under threat?

In 2022, the EU and Azerbaijan signed a “gas agreement” aimed at reducing Europe’s energy dependence on Russia. However, data from 2024 show that alongside Azerbaijani gas, Russian oil refined in Baku is also entering Europe via the same routes.

This paradox puts European policymakers in a difficult position. During her April 2025 visit to Baku, European Commission Vice-President Kaja Kallas told President Ilham Aliyev: “You have helped the EU strengthen its energy security.”

But that energy security now appears to rely in large part on Putin’s “blood oil.”

Analysts suggest that the UK’s Russia sanctions, which have strongly affected Azerbaijan, are not just about a tanker, two companies, and five businessmen. They represent a geopolitical warning to Baku: either choose transparency and diplomatic balance — or prepare for intensified international pressure.

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