Chennai, India – A complex network of companies, potentially involving Indian entities, has been identified as facilitating the movement of at least $90 billion worth of Russian oil, circumventing international sanctions imposed following the invasion of Ukraine. The findings, reported by the Financial Times, suggest a sophisticated operation designed to obscure the origin of the oil, particularly that originating from the sanctioned Russian energy giant, Rosneft.
The investigation reveals 48 seemingly independent companies operating from various physical addresses, yet appearing to function as a coordinated unit to disguise the source of the crude. Since the implementation of sanctions, a previously unknown entity within this network, “Redwood Global Supply,” has emerged as the largest exporter of Russian crude oil, according to the FT’s analysis. This development raises concerns about the effectiveness of current sanctions regimes and the lengths to which traders are going to continue accessing Russian energy resources.
A Web of Domains and Shared Infrastructure
The Financial Times identified a key technical link connecting these companies: 442 web domains all utilizing the same private server for email – “mx.phoenixtrading.ltd.” This shared infrastructure suggests a centralized back-office operation, despite the companies presenting themselves as independent entities. This shared email server is a significant indicator of coordination and potential control within the network.
By cross-referencing company names found in these domain registrations with those appearing in Russian and Indian customs records, the FT was able to establish connections to actual oil transactions. For example, Foxton FZCO, a Dubai-based company, is listed in Russian export filings as having purchased $5.6 billion worth of oil and is linked to the domain “foxton-fzco.com.” Similarly, Advan Alliance, appearing in Indian filings as having sold $1.5 billion of Russian oil, is connected to “advanalliance.ltd.” These connections highlight how the network operates across international borders to move and sell the sanctioned oil.
Indian Connections and Rosneft-Linked Shipping
The report specifically points to the involvement of Indian entities in this alleged scheme. Analysis of shipping patterns reveals that companies within the network frequently utilize vessels connected to Rosneft, including those previously operated by Gatik Ship Management, an Indian-registered company. Gatik Ship Management briefly owned 58 tankers in 2023, a fleet described as a “ghost fleet” due to its opaque ownership structure. IndianOil and Chennai Petroleum have stated they will abide by US sanctions and halt purchases from Rosneft and Lukoil, but the FT report suggests alternative routes are being used.
The precise legal relationships between the companies within the network remain unclear. However, the FT suggests a division of labor: one set of companies purchases the crude oil, while another set sells it into markets like India and China. Only two companies have been identified in both Russian and Indian documentation, further complicating the tracing of transactions.
Rising ‘Unknown’ Purchases in India
Data from Kpler, a global real-time data and analytics provider, indicates a significant increase in purchases of Russian oil by “unknown” Indian buyers. In December, these unknown buyers accounted for more than one-third of India’s total Russian oil purchases, a substantial increase from November. This surge in opaque transactions raises questions about the ultimate beneficiaries of these deals and the extent to which sanctions are being circumvented. Rosneft remains a major supplier to India despite the sanctions, with Reliance Industries, Indian Oil, and Nayara Energy among the key buyers.
The Financial Times report comes amid increasing scrutiny of India’s continued imports of Russian oil, even as Western nations have imposed sanctions aimed at limiting Russia’s revenue streams. While India maintains it is securing energy supplies at competitive prices, the findings raise concerns about potential violations of sanctions and the broader geopolitical implications of these transactions.
The US has imposed sanctions on Rosneft and Lukoil, leading IndianOil and Chennai Petroleum to halt direct purchases from these companies, effective November 21, 2025. However, the emergence of this alleged smuggling ring suggests that alternative pathways are being exploited to maintain the flow of Russian oil to key markets.
Authorities have not yet commented on the specific allegations outlined in the Financial Times report. The investigation is ongoing, and further scrutiny is expected to focus on the companies and individuals involved in this complex network. The next step will likely involve increased pressure from international regulators to identify and disrupt these operations, and to ensure compliance with existing sanctions regimes.
This story will be updated as more information becomes available. Share your thoughts and insights in the comments below.
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