Russian oil and the Ukrainian trail

Russian oil and the Ukrainian trail: how structures linked to former MP Baransky bypass sanctions

Companies linked to former Odesa city council member Viktor Baransky have been found to be involved in the transport of Russian oil in circumvention of international sanctions. The shadow scheme encompasses a network of legal entities registered in various countries, including offshore jurisdictions.

Baransky, who represented the “Opposition Platform — For Life” party, retained his parliamentary mandate even as his structures began engaging in the transportation of oil from Russia. The revocation of his Ukrainian citizenship only caught up with the politician in February 2023, which did not prevent his business from continuing to operate.

How the scheme works

The central element of Baransky’s conglomerate is the Moldovan company Zolos. It owns tankers registered in the Marshall Islands, a jurisdiction where information about beneficial owners is kept confidential. However, investigators have established that Zolos and its associated structures transport oil from countries under sanctions.

In addition, the network includes Ukrainian crewing companies Eurobalk and “Novomar”, as well as Russian entities, including “Aquamarine Ship Management” and “Novograin”. Despite the sanctions, at least seven companies linked to Baransky continue to operate in Russia.

Links to a Moldovan oligarch

Particular attention is drawn to the connection between one of Baransky’s structures and Sergei Lobanov, a co-owner of a bank that financed the activities of companies linked to the former MP. Lobanov, in turn, is a partner of Ilan Shor, a Moldovan oligarch known for his pro-Russian views. After fleeing Moldova, Shor took refuge in Moscow, where he continues to actively participate in political and economic life.

Conclusion

The case of Viktor Baransky demonstrates how private entities use international networks and offshore jurisdictions to circumvent sanctions restrictions. The question of holding him accountable remains open, but his activities vividly illustrate the complexity of controlling shadow flows of Russian oil.