EU Investigates Rebranding of Sanctioned Russian Oil in Turkey for Sale in Europe

The European Anti-Fraud Office OLAF has launched an investigation into a loophole that allows countries such as Turkey to export sanctioned Russian oil to the EU under a different label.

This loophole brought Russia up to €3 billion from just three Turkish ports in the 12 months after the EU imposed sanctions on Russian oil imports in February 2023, Politico reported, citing its own sources.

The EU investigation was launched after Politico found that millions of barrels of Russian fuel were likely to enter the EU after being rebranded in Turkey, despite the ban on such Russian imports.

Such a scheme is made possible by a loophole in Brussels' sanctions that allows so-called “blended” fuel to enter the EU if it is labelled as non-Russian but originates in Russia.

This practice demonstrates the creative ways in which Russia is circumventing EU sanctions and protecting its fossil fuel trade, which accounts for almost half of Russia's revenue.

As a reminder, on 24 June, the EU Council announced new sanctions against Russia, targeting tankers belonging to the so-called Russian oil shadow fleet. In July, more than 40 European countries agreed on a plan to combat Russia's shadow oil fleet at the summit of the European Political Community.

Meanwhile, a joint investigation by Politico and the non-profit journalism group SourceMaterial has revealed at least nine cases of Russian shadow fleet vessels leaving oil spills in global waters, which can be used to trace the routes of oil movement and places of illegal trade.