Lukoil finds a loophole: Russian oil giant pumps billions past EU sanctions

Russian oil company Lukoil, which earned nearly €100 billion last year, is circumventing EU sanctions thanks to a clever legal construct involving a subsidiary registered in Ireland.

Lukoil Capital Designated Activity Company was established in September 2021, just a few months before the start of the full-scale war in Ukraine. Its sole function is to issue bonds on international markets, raising billions of dollars for the needs of Russia's Lukoil.

The total amount of bonds issued through the Irish structure is $2.3 billion. These funds ultimately end up with the parent company in Russia.

At the same time, the Irish company itself is not under sanctions, as the EU has not formally banned Lukoil's activities, unlike the US and the UK. This allows the Russian giant to maintain access to Western capital markets even in conditions of international isolation.

Lukoil Capital's directors are linked to Vantru, a corporate services company in Northern Ireland. The same individuals run the Irish branch of Moscow's airport, which has also come under the scrutiny of journalists.

In a comment to The Currency, Vantru founder Rory Malvani confirmed that his company works with Irish firms linked to Russia and considers it legal to collect funds from Russian businesses for payments to Western investors, provided that such payments are not prohibited.

Source: Economic Truth, The Currency