An email server breach has exposed a network of at least 48 companies allegedly used to smuggle $90 billion of Russian oil, circumventing international sanctions and providing a crucial funding source for the Kremlin’s war in Ukraine, the Financial Times reported on February 20, 2026.
The Financial Times identified the seemingly independent entities as operating from different physical addresses, a tactic designed to obscure the origin of the crude oil, much of which is linked to the state-controlled producer Rosneft. The network was discovered due to the companies’ shared use of a single private email server, “mx.phoenixtrading.ltd,” suggesting coordinated back-office operations.
The arrangement appears to involve distinct roles within the network, with some companies purchasing crude oil cargoes and others selling them into markets like India and China. Shipments are similarly being routed through intermediary locations, such as the United Arab Emirates, further complicating efforts to trace the oil’s origin.
Latvia’s foreign minister, Baiba Braže, stated that the network renders the enforcement of the oil price cap “nearly impossible,” and called for sanctions against the entire system. “All the ecosystem needs to be sanctioned,” she said.
According to the Financial Times, three European Union officials indicated that the findings could bolster calls for new sanctions. David O’Sullivan, the EU’s sanctions envoy, noted that the bloc is observing “increasingly complex patterns” designed to bypass existing measures.
The Financial Times analysis of web domain registrations revealed 442 domains publicly linked to the shared email server. Filings associated with these domains documented Russian oil exports exceeding $90 billion. Much of the crude was categorized under generic names like “export blend,” and many of the entities lack publicly available websites or contact information.
The newspaper acknowledged that the actual value of the smuggled oil is likely higher, as the available customs data is incomplete. The $90 billion figure represents a conservative estimate based on the data examined.
Sergey Vakulenko, a former strategy head at Gazprom Neft, described the use of numerous shell companies as a tactic dating back to the 1990s, employed to build fortunes and evade taxes. However, he expressed surprise at the scale and importance of this particular network to Rosneft, stating, “I’d have expected more sock puppets.”
The discovery of this network follows recent US sanctions targeting Rosneft and Lukoil, which initially prompted some key buyers to pause purchases, leading to an increase in Russian crude oil stored on tankers at sea.
