EU sanctions name Pakistani-Canadian trader over Russian oil dealings

BRUSSELS: The European Union has imposed fresh sanctions targeting individuals and entities accused of helping Russia circumvent Western restrictions on its oil exports, naming a Pakistani-Canadian businessman among those allegedly facilitating the trade and contributing to Moscow’s war economy.

In a decision adopted on Monday, the EU added nine individuals and companies to its sanctions list for supporting Russia’s so-called “shadow fleet” — a network of oil tankers and intermediaries used to bypass restrictions on shipping, insurance and financing. The measures bar EU citizens and firms from doing business with those listed and further limit their access to key maritime services.

Among those sanctioned is Murtaza Lakhani, a Canadian-Pakistani oil trader and chief executive of Mercantile & Maritime. According to the EU’s Official Journal, Lakhani has enabled the shipment and export of Russian oil, including crude originating from the state-owned energy giant Rosneft. The listing alleges that he controls vessels transporting Russian oil or petroleum products exported from Russia.

EU officials said the new sanctions are part of broader efforts to disrupt revenue streams sustaining Russia’s military campaign in Ukraine. In total, the bloc has now sanctioned more than 2,600 individuals and entities since the invasion began.

Lakhani’s business career spans decades in global energy trading. He began at commodities giant Glencore and later worked on Iraqi oil exports during the era of Saddam Hussein. He subsequently moved to Iraq’s Kurdistan region, where he acted as an intermediary in oil sales independent of Baghdad, facilitating deals between the Kurdistan Regional Government and international firms.

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During that period, he developed close ties with Russia’s Rosneft and its chief executive Igor Sechin, helping the company secure oil and gas agreements in the region. He later partnered with major trader Vitol to acquire a minority stake in Rosneft’s flagship Arctic Vostok Oil project, one of Russia’s largest energy developments in recent decades.

The EU sanctions also target companies linked to Russian oil majors Rosneft and Lukoil, as well as shipping firms managing tankers used to transport discounted Russian crude, largely to markets such as India and China. Despite 19 sanctions packages, Moscow continues to export millions of barrels of oil daily, relying heavily on vessels operating outside the Western maritime system.

EU officials said more than 40 additional ships linked to Russia’s shadow fleet are expected to be sanctioned this week, potentially bringing the total number of listed vessels to around 600.

Lakhani, Mercantile & Maritime and other related entities did not respond to requests for comment.