A web of intrigue unfurls, exposing a clandestine oil-trading operation that fueled Russia's war machine amidst Western sanctions.
In the early days of the Ukraine conflict, a mysterious entity named Nord Axis emerged, swiftly becoming a major global trader of Russian oil. This seemingly out-of-thinnest-air firm, registered in Hong Kong just days before the invasion, raised eyebrows. Who was orchestrating these deals, bypassing Western sanctions and funneling billions towards Putin's war effort?
Enter Etibar Eyyub, an elusive Azeri trader who, according to insiders, swiftly constructed a shadowy empire. This clandestine network, cobbled together with aged tankers and disguised through a maze of Dubai and Hong Kong-based companies, moved vast quantities of oil to new buyers in China, India, and beyond.
Eyyub, described as a tenacious dealmaker, honed his skills at Coral Energy, a UAE-based commodities trader. Though Coral officially exited the Russian market in early 2022, some paint a different picture. Sources claim certain individuals linked to Eyyub continued operating in the shadows, even establishing firms referred to as "Coral satellites."
Rosneft, Russia's state-owned oil giant, increasingly relied on opaque ownership and management structures to navigate sanctions. This tactic, employed by many regimes to circumvent restrictions, raises red flags for U.S. officials monitoring the trade.
Operating from Moscow and Dubai, Eyyub's network funneled transactions through various companies, obscuring the beneficiaries. His private jet trips to and from Moscow further fuel suspicions.
One crucial question: was Coral Energy, where Eyyub once thrived, involved? The company denies any connection to Eyyub's post-Coral activities or the firms he allegedly operates. However, former colleagues describe "satellite" firms and Rosneft officials using "Coral" as a shorthand for Eyyub's network.
The U.S. Department of Justice, suspecting sanctions violations, has reportedly set its sights on Eyyub, Coral, and its founder, Tahir Garayev. Garayev, another Azeri native, established Coral in 2010 and hired Eyyub in 2014.
Western sanctions slammed Russia's oil exports, with major players like Trafigura abandoning Rosneft. With traditional avenues shut, Moscow desperately sought new outlets. That's when Rosneft, according to sources, allegedly tapped Coral - specifically Eyyub - to fill the void.
Coral publicly declared its intention to exit the Russian market. However, questions linger about potential shadow operations. The company claims it ceased Russian oil trading in May 2022 due to regulatory and logistical uncertainties, not wanting to jeopardize access to Western banks.
As the war raged on, the U.S. and G-7 implemented a price cap on Russian oil, aiming to restrict Moscow's earnings while keeping oil flowing. Eyyub's network, however, allegedly adapted. Using purchases and charters, they built a vast "shadow fleet" of over 80 ships, enabling them to circumvent the cap.
Sources claim individuals working for Eyyub's network in Moscow discussed tactics to bypass the price cap in late 2022. They operated from an office linked to a senior Coral executive, raising further concerns. Coral vehemently denies these allegations, maintaining they ceased Russian oil trading before the cap and distancing themselves from Eyyub's activities.
Despite challenges, Russia's oil sales reached $180 billion in 2023, exceeding pre-war levels. While down from 2022's peak, it demonstrates the network's effectiveness in finding new buyers and navigating sanctions.
U.S. authorities suspect Coral's involvement in the network, though neither Eyyub nor Garayev have been sanctioned. Whether or not Coral truly severed ties with the alleged network remains an open question. The investigation continues, casting a shadow over the complex and murky world of oil trading amidst geopolitical conflict.
