economy
Revealed: UK oil refinery owner moved Russian loans to offshore subsidiary where sanctions did not apply
MPs call for investigation into Essar Energy, owner of Stanlow refinery, which shifted loans from ‘Putin’s piggy bank’ VTB to Mauritius
TL;DR
- Essar, owner of the Stanlow refinery, moved $3 billion in loans from sanctioned Russian bank VTB from Cyprus to Mauritius.
- This move occurred after Russia's invasion of Ukraine and subsequent sanctions on VTB.
- Cypriot authorities are investigating if Essar's transactions violate EU sanctions regulations.
- UK MPs have called for British authorities to investigate the deal for potential sanctions circumvention.
- Essar states it complied with all applicable sanctions laws based on legal advice.
- Forensic accountants suggest potential new Russian loan exposure not explained by accrued interest.
- Mauritian authorities noted Essar's failure to provide evidence regarding its ties to Russia during a restructuring approval process.