Four years after the full-scale invasion of Ukraine, Russia’s foreign trade has not collapsed under sanctions. Instead, it has adapted — rerouted through intermediaries, restructured supply chains, and become increasingly reliant on offshore jurisdictions.
A new study by Transparency International Russia (in exile) finds that companies registered in the UK Overseas Territories remain a key conduit for Russian trade. Through these jurisdictions, Russian firms continue to procure equipment, export raw materials, and move assets beyond the reach of scrutiny.
Between February 2022 and January 2025, trade routed through these offshore structures amounted to at least USD 8 billion across more than 29,000 transactions.
Why the UK Overseas Territories
More than 95% of the transactions identified involve the British Virgin Islands and Bermuda — jurisdictions where access to beneficial ownership information remains limited.
This opacity makes them attractive under sanctions pressure. Intermediary companies can obscure supply chains, complicate due diligence, and reduce the legal and reputational risks faced by counterparties.
The British Virgin Islands appear particularly frequently in Russian export transactions, suggesting their use in concealing revenues from natural resource trade.
“The UK’s Overseas Territories remain an important part of the global financial system; however, insufficient transparency makes them a convenient tool for hiding assets and circumventing sanctions. Our analysis shows that, despite international pressure, these mechanisms continue to function — and Russian companies still actively use them for foreign trade, asset transfers, and shielding revenues from oversight,” notes the report’s author, Vlad Netyaev.
What is being traded
The transactions span a wide range of goods, including petroleum products, coal from the occupied territories of Ukraine, oil and gas equipment, helicopters, and business jets.
Luxury assets form a distinct category. Between 2022 and early 2024, at least 160 yacht transfers were recorded through companies registered in the UK Overseas Territories. These cases illustrate how offshore structures are used not only for trade but also for holding and relocating high-value assets.
Sanctions exposure
Some shipments involve metals subject to UK sanctions, including lead and zinc. This may point to sanctions breaches or the use of intermediary structures that obscure the origin of goods and the identity of final recipients.
The Russian trade data covered in this research is not publicly available. If you require verification of this data, please contact us at [email protected]
An update as of 16.03.2026:
The PDF version incorrectly states the statement regarding SK “Seftra” LLC and “Seftra” LLC on page 9. In the Russian version, it is correct and should be read as follows:
The yacht is registered to the company SK “Seftra” LLC. This firm is linked to “Seftra” LLC, which, as reported by the project “Rusmonitor” citing Ukrainian intelligence, ordered the decor for Putin’s yacht, the Graceful.
