The British company Essar Oil stopped all imports of Russian fuel after Russia's invasion of Ukraine in 2022. However, the company provided Litasco's credit line to the oil trading division of Russian Lukoil.
Despite the sanctions, the British refinery will cooperate with Lukoil
One of the largest oil refineries in Britain continues to work with a division of the Russian oil company Lukoil.
The UK publication Guardian reports this information.
The British company Essar Oil stopped all Russian fuel imports after Russia's Ukraine invasion in 2022. However, according to a recently submitted report, the company provided a Litasco credit line to the oil trading division of the Russian Lukoil.
Litasco itself is not subject to sanctions. So the deal, effectively a line of credit, allows Essar to buy fuel and pay later.
Litasco is fully owned by Lukoil, whose founder and shareholder, Vahit Alekperov, was sanctioned by Great Britain back in April 2022. "Lukoil" is under sanctions in the USA, but not in Great Britain and the EU, while Litasco is not under sanctions in any of the countries, the publication writes.
Essar Oil said that the company stopped importing Russian fuel many months before the deadline set by the government and increased its production. It also does not import any fuel of Russian origin because it works "following the sanctions legislation."
As of the end of March 2022, Alekperov owned and had voting rights for 3.12% of Lukoil shares. He also held a beneficial economic interest in an additional 5.43% of the shares.
However, in April 2022, Russian oil tycoon Alekperov resigned as president of Lukoil.
British sanctions against the Russian Federation
The UK recently announced the creation of a new unit to deal with companies that evade sanctions against Russia.
The unit will help companies comply with sanctions and investigate violations. The authority can fine the company if violations are proven or refer the case to HMRC (His Majesty Revenue and Customs) for prosecution.
Also, Britain and the USA introduced sanctions against Russians associated with the Russian FSB.
On December 14, it became known that the British government introduced a law providing further sanctions on goods and technologies that helped the Russian Federation finance the war against Ukraine.
In addition, the British government will not lift sanctions against the Russian Federation immediately after the end of the war in Ukraine. According to Nusrat Ghani, the Deputy Minister of Business and Trade of Great Britain, maintaining sanctions against the Russian Federation will prevent the rapid recovery of the Kremlin's military potential.
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