Russian oil giant uses Irish loophole to dodge EU sanctions
The Russian oil company Lukoil, which earned nearly €100 billion ($113 billion) last year, is circumventing European Union sanctions using a clever legal strategy involving a subsidiary registered in Ireland, according to the local service, The Currency.
The Irish company called Lukoil Capital Designated Activity Company was established in September 2021, just a few months before Russia's full-scale invasion of Ukraine. According to the Irish service, its sole purpose is to issue bonds on international markets. This enables it to raise billions of dollars for the Russian parent company.
Russian giant circumvents sanctions with Irish ruse
The total value of bonds issued through the Irish subsidiary amounts to $2.3 billion. These funds ultimately reach Lukoil's headquarters in Russia.
The Irish subsidiary itself is not subject to sanctions because the EU has not formally prohibited Lukoil's operations– unlike the United States and the United Kingdom. This allows the Russian oil giant to continue accessing Western capital markets despite international isolation.
The directors of Lukoil Capital are linked to Vantru—a corporate services firm based in Northern Ireland. The same individuals also manage the Irish branch of one of Moscow's airports, a fact that has not gone unnoticed by journalists. The matter is also being reported by Ukrainska Pravda.
In an interview with The Currency, Vantru founder Rory Mulvaney confirmed that his company works with Irish firms linked to Russia. In his opinion, raising funds from Russian companies for payouts to Western investors is legal, provided such payments are not prohibited.
