Jump to content

2Rivers: Difference between revisions

From Wikipedia, the free encyclopedia
Browse history interactively
← Previous edit
Content deleted Content added
VisualWikitext
Making changes related to an objective assessment of the situation. Ukrainian journalistic investigations are subjective and politicized, which casts doubt on the veracity of the information presented
Tags: Reverted references removed Visual edit
 
(30 intermediate revisions by 12 users not shown)
Line 1: Line 1:
{{Short description|Dubai-based commodity trader}}
{{Short description|Dubai-based commodity trader}}
{{Infobox company
{{Infobox company
| name = 2Rivers (formerly Coral Energy)
| name = 2Rivers
| logo = 2Rivers.jpg
| logo = 2Rivers.jpg
| type = [[Privately held company|Private]]
| type = [[Privately held company|Private]]
Line 9: Line 9:
| location = [[Dubai]], [[UAE]]
| location = [[Dubai]], [[UAE]]
| locations = 3
| locations = 3
| area_served = Worldwide (with a focus on Russia)<ref name=":5">{{Cite news |date=2023-08-06 |title=Russia's ghost fleet: Moscow's new oil routes |url=https://www.lemonde.fr/en/international/article/2023/08/06/russia-s-ghost-fleet-moscow-s-new-oil-routes_6082264_4.html |access-date=2024-10-14 |work=LeMonde |language=en |ref=lemonde}}</ref>
| area_served = Worldwide
| key_people = {{Unbulleted list|Etibar Eyyub<ref name="wsj" />|Talat Safarov|Anar Madatli|Ahmed Kerimov<ref name="reuters" />}}
| key_people = {{Unbulleted list|Etibar Eyyub<ref name="wsj" />|Talat Safarov|Anar Madatli|Ahmed Kerimov<ref name="reuters" />}}
| services = {{Unbulleted list|[[Price of oil|Energy & Commodities]]|[[Oil tanker|Shipping & Chartering]] ([[Shadow fleet]]<ref name=":7">{{Cite web |date=2023-04-05 |title=Lloyd's List Daily Briefing - 5th April 2023 |url=https://www.lloydslist.com/-/media/lloyds-list/daily-pdf/2023/04-april/dailypdf050423.pdf |access-date=2024-10-14 |ref=Lloyds}}</ref>)}}
| services = {{Unbulleted list|[[Price of oil|Energy & Commodities]]|[[Oil tanker|Shipping & Chartering]] ([[Shadow fleet]]<ref name=":7">{{Cite web |date=2023-04-05 |title=Lloyd's List Daily Briefing - 5th April 2023 |url=https://www.lloydslist.com/-/media/lloyds-list/daily-pdf/2023/04-april/dailypdf050423.pdf |access-date=2024-10-14 |ref=Lloyds}}</ref>)}}
| owner = Pura Vida Holding Limited, UAE.<ref name="gordon">{{Cite web |title=Coral Energy Founder Tahir Garayev and His Network of Companies Help Russia Evade Sanctions – Investigation |url=https://english.gordonua.com/news/newsenglish/coral-energy-founder-tahir-garayev-and-his-network-of-companies-help-russia-evade-sanctions-investigation-1719887.html |access-date=2024-10-16 |website=Гордон {{!}} Gordon |language=ru}}</ref>
| owner = Pura Vida Holding Limited, UAE.
| num_employees = 300+ (as of October 2023)<ref name=":0">{{Cite web |title=Interview with Ahmed Kerimov |url=https://haqqin.az/news/296379 |access-date=2024-10-14 |website=haqqin.az |ref=Interview}}</ref>
| num_employees = 300+ (as of October 2023)<ref name=":0">{{Cite web |title=Interview with Ahmed Kerimov |url=https://haqqin.az/news/296379 |access-date=2024-10-14 |website=haqqin.az |ref=Interview}}</ref>
| homepage = {{URL|2rivers-group.com}}
| homepage = {{URL|2rivers-group.com}}
}}
}}


'''2Rivers''',<ref>{{cite web|url=https://www.xm.com/research/markets/commodities/reuters/oil-trader-coral-energy-rebrands-as-2rivers-group-after-buyout-53891716|title=Oil trader Coral Energy rebrands as 2Rivers Group after buyout|publisher=[[Reuters]]|date=2024-06-29}}</ref> formerly '''Coral Energy''', is a Dubai-based oil trading company engaged in the sale and export of [[Petroleum industry in Russia|Russian crude oil and petroleum products]].<ref>{{cite web|url=https://www.wsj.com/articles/little-known-commodity-traders-help-russia-sell-oil-11653643583|title=Little-Known Commodity Traders Help Russia Sell Oil|publisher=[[The Wall Street Journal]]|website=wsj.com|date=2022-05-27|author=Anna Hirtenstein, Joe Wallace}}</ref><ref name="bloomberg">{{cite web|url=https://www.bloomberg.com/news/articles/2023-08-05/upstart-traders-of-russian-oil-had-representatives-in-common|title=Upstart Traders of Russian Oil Had Representatives in Common|publisher=[[Bloomberg News|Bloomberg]]|website=bloomberg.com|date=2023-08-05|author=Archie Hunter, Patrick Sykes, Jack Farchy}}</ref> 2Rivers was founded by [[Azerbaijan]]i citizen Tahir Gadir oghlu Garayev (Tahir Garayev) in 2010.<ref name="reuters"/> 2Rivers, according to journalistic investigations, has a close relationship with [[Igor Sechin]]<ref name="wsj"/> and [[Rosneft]].<ref name="wsj"/><ref name="wp">{{cite web|url=https://www.washingtonpost.com/opinions/2024/06/18/russia-oil-sanctions-ukraine-white-house-inflation/|title=A wary White House views Russia oil sanctions through lens of inflation|publisher=[[The Washington Post]]|website=washingtonpost.com|date=2024-06-18|author=David Ignatius}}</ref> Since 2022, 2Rivers has quietly grown to become the largest trader circumventing [[2022 Russian crude oil price cap sanctions|Western sanctions on Russian crude and petroleum exports]], mainly from Rosneft.<ref name="wp"/><ref name="bloomberg"/> 2Rivers operates through a web of companies that appear to be unaffiliated, but are controlled by the 2Rivers’ executive team. This includes dozens of trading companies established in the DMCC freezone of the [[UAE]], as well as ship management and operations companies.
'''2Rivers''',<ref>{{cite web|url=https://www.xm.com/research/markets/commodities/reuters/oil-trader-coral-energy-rebrands-as-2rivers-group-after-buyout-53891716|title=Oil trader Coral Energy rebrands as 2Rivers Group after buyout|publisher=[[Reuters]]|date=2024-06-29}}</ref> formerly '''Coral Energy''', is a Dubai-based oil trading company engaged in the sale and export of [[Petroleum industry in Russia|Russian crude oil and petroleum products]].<ref>{{cite web|url=https://www.wsj.com/articles/little-known-commodity-traders-help-russia-sell-oil-11653643583|title=Little-Known Commodity Traders Help Russia Sell Oil|publisher=[[The Wall Street Journal]]|website=wsj.com|date=2022-05-27|author=Anna Hirtenstein, Joe Wallace}}</ref><ref name="bloomberg">{{cite web|url=https://www.bloomberg.com/news/articles/2023-08-05/upstart-traders-of-russian-oil-had-representatives-in-common|title=Upstart Traders of Russian Oil Had Representatives in Common|publisher=[[Bloomberg News|Bloomberg]]|website=bloomberg.com|date=2023-08-05|author=Archie Hunter, Patrick Sykes, Jack Farchy}}</ref> 2Rivers was founded by [[Azerbaijan]]i citizen Tahir Gadir oghlu Garayev (Tahir Garayev) in 2010.<ref name="reuters"/> 2Rivers, according to journalistic investigations, has a close relationship with [[Igor Sechin]]<ref name="wsj"/> and [[Rosneft]].<ref name="wsj"/><ref name="wp">{{cite web|url=https://www.washingtonpost.com/opinions/2024/06/18/russia-oil-sanctions-ukraine-white-house-inflation/|title=A wary White House views Russia oil sanctions through lens of inflation|publisher=[[The Washington Post]]|website=washingtonpost.com|date=2024-06-18|author=David Ignatius}}</ref> Since 2022, 2Rivers has quietly grown to become the largest trader circumventing [[2022 Russian crude oil price cap sanctions|Western sanctions on Russian crude and petroleum exports]], mainly from Rosneft.<ref name="wp"/><ref name="bloomberg"/> 2Rivers operates through a web of companies that appear to be unaffiliated, but are controlled by the 2Rivers’ executive team. This includes dozens of trading companies established in the DMCC freezone of the [[UAE]], as well as ship management and operations companies.<ref name="lemonde">{{cite web|url=https://www.lemonde.fr/en/les-decodeurs/article/2024/10/30/shell-companies-ghost-ships-and-secret-traders-how-russia-circumvents-western-oil-sanctions_6730981_8.html|title=Shell companies, ghost ships and secret traders: How Russia circumvents Western oil sanctions|publisher=[[Le Monde]]|website=lemonde.fr|author=Julien Bouissou, Anne Michel and Poline Tchoubar|date=2024-10-30}}</ref>


Prior to the 2022 [[Russian invasion of Ukraine]], 2Rivers – at that time Coral Energy – was based in [[Geneva]].<ref name="reuters">{{cite web|url=https://www.reuters.com/markets/deals/management-buys-out-oil-trader-coral-energy-2024-06-25/|title=Management buys out oil trader Coral Energy|publisher=[[Reuters]]|website=reuters.com|date=2024-06-25|author=Julia Payne}}</ref> After the invasion, 2Rivers moved its headquarters to [[Dubai]] and has offices in [[Singapore]] and Geneva.<ref name="reuters"/> The company announced that it closed its [[Moscow]] office in 2022, however, investigations concluded that the company continues to manage an office there under a different name.<ref name="wp"/><ref>{{cite web|url=https://www.moscowtimes.ru/2022/05/29/kak-vivozyat-neft-iz-rossii-a20761|title= Кто и как сегодня торгует российской нефтью|publisher=[[The Moscow Times]]|website=moscowtimes.ru|date=2022-05-29}}</ref>
Prior to the 2022 [[Russian invasion of Ukraine]], 2Rivers – at that time Coral Energy – was based in [[Geneva]].<ref name="reuters">{{cite web|url=https://www.reuters.com/markets/deals/management-buys-out-oil-trader-coral-energy-2024-06-25/|title=Management buys out oil trader Coral Energy|publisher=[[Reuters]]|website=reuters.com|date=2024-06-25|author=Julia Payne}}</ref> After the invasion, 2Rivers moved its headquarters to [[Dubai]] and has offices in [[Singapore]] and Geneva.<ref name="reuters"/> The company announced that it closed its [[Moscow]] office in 2022, however, investigations concluded that the company continues to manage an office there under a different name.<ref name="wp"/><ref>{{cite web|url=https://www.moscowtimes.ru/2022/05/29/kak-vivozyat-neft-iz-rossii-a20761|title= Кто и как сегодня торгует российской нефтью|publisher=[[The Moscow Times]]|website=moscowtimes.ru|date=2022-05-29}}</ref>


A report from [[The Wall Street Journal]] in early 2024 reported that Coral Energy controls at least 100 vessels through seemingly unaffiliated shell companies.<ref name="wsj">{{cite web|url=https://www.wsj.com/business/energy-oil/russia-oil-trading-secret-network-sanctions-fc3981b7|title=The Secret Oil-Trading Ring That Funds Russia’s War|publisher=[[The Wall Street Journal]]|website=wsj.com|date=2024-02-19|author=Joe Wallace, Anna Hirtenstein, Costas Paris}}</ref><ref name="wp"/> These include Gatik Ship Management, Gaurik Ship Management, and Buena Vista Shipping. At least five of these vessels have been sanctioned by the UK and EU.<ref name=":1">{{Cite news |title=Russia's sanctions-dodging is getting ever more sophisticated |url=https://www.economist.com/finance-and-economics/2023/03/02/russias-sanctions-dodging-is-getting-ever-more-sophisticated |access-date=2024-10-14 |newspaper=The Economist |issn=0013-0613}}</ref> These vessels continue to carry crude and petroleum products purchased by 2Rivers trading companies in violation of Western sanctions.<ref name=":1"/>
A report from [[The Wall Street Journal]] in early 2024 reported that Coral Energy controls at least 100 vessels through seemingly unaffiliated shell companies.<ref name="wsj">{{cite web|url=https://www.wsj.com/business/energy-oil/russia-oil-trading-secret-network-sanctions-fc3981b7|title=The Secret Oil-Trading Ring That Funds Russia’s War|publisher=[[The Wall Street Journal]]|website=wsj.com|date=2024-02-19|author=Joe Wallace, Anna Hirtenstein, Costas Paris}}</ref><ref name="wp"/> These include Gatik Ship Management, Gaurik Ship Management, and Buena Vista Shipping. At least five of these vessels have been sanctioned by the UK and EU.<ref name=":1">{{Cite news |title=Russia's sanctions-dodging is getting ever more sophisticated |url=https://www.economist.com/finance-and-economics/2023/03/02/russias-sanctions-dodging-is-getting-ever-more-sophisticated |access-date=2024-10-14 |newspaper=The Economist |issn=0013-0613}}</ref> These vessels continue to carry crude and petroleum products purchased by 2Rivers trading companies in violation of Western sanctions.<ref name=":1"/><ref name="lemonde"/>


== History ==
== History ==


2Rivers Group (Coral Energy) was founded by Tahir Garayev in 2010.<ref name="reuters"/> According to market sources, 2Rivers most likely has ties to the functionaries of the ruling elite of [[Azerbaijan]].<ref name="enkorr">{{cite web|url=https://enkorr.ua/uk/news/perevzulisya_coral_energy_sta_2rivers_group/260384|title=Перевзулися: Coral Energy стає 2Rivers Group|website=enkorr.ua|date=2024-08-22}}</ref> Etibar Eyyub, Azerbaijani citizen, is the main point of contact between 2Rivers and [[Igor Sechin]].<ref name="wsj"/> He maintains a close relationship with Garayev and is instrumental in directing 2Rivers’ activities, but does not have an official ownership stake on paper.
2Rivers Group (Coral Energy) was founded by Tahir Garayev in 2010.<ref name="reuters"/> According to market sources, 2Rivers most likely has ties to the functionaries of the ruling elite of [[Azerbaijan]].<ref name="enkorr">{{cite web|url=https://enkorr.ua/uk/news/perevzulisya_coral_energy_sta_2rivers_group/260384|title=Перевзулися: Coral Energy стає 2Rivers Group|website=enkorr.ua|date=2024-08-22}}</ref> Etibar Eyyub, Azerbaijani citizen, is the main point of contact between 2Rivers and [[Igor Sechin]].<ref name="wsj"/> He maintains a close relationship with Garayev and is instrumental in directing 2Rivers’ activities, but does not have an official ownership stake on paper.<ref name="lemonde"/>


Until the end of 2023, Garayev owned 100% of 2Rivers (then Coral Energy) through a complex corporate structure. Garayev owned 100% of Novus Middle East DMCC (UAE), which controlled 100% of Vetus Investments Limited (UAE).<ref name="gordon"/> Vetus Investments then controlled 100% of Coral Energy. According to international investigations, under the growing pressure on the company to circumvent the latest sanctions, Garaev transferred 60% of the shares of Novus Middle East DMCC to the company Pura Vida Holding Limited (UAE),<ref name="gordon"/> secured by the current management of 2Rivers: Talat Safarov (45%), Ahmed Kerimov (35%) and Anar Madatli (20%). At the beginning of 2024, CEO Talat Safarov, CFO Ahmed Kerimov, and CCO Anar Madatli (Azerbaijani nationals and UAE residents) completed the purchase of Garayev's remaining shares.<ref name="censor">{{cite web|url=https://m.censor.net/en/news/3510392/amelin_on_the_activities_of_russian_shadow_tankers_in_eu_waters|title="Shadow" tankers of RF carried out environmentally hazardous ship-to-ship transportation in EU waters for EUR 273 million - Amelin|website=censor.net|date=2024-09-17}}</ref> Garayev continues to exercise control over 2Rivers, despite not owning the company on paper. Anar Madatli is also Tahir Garayev’s brother-in-law.<ref name="censor"/>
Until the end of 2023, Garayev owned 100% of 2Rivers (then Coral Energy) through a complex corporate structure. Garayev owned 100% of Novus Middle East DMCC (UAE), which controlled 100% of Vetus Investments Limited (UAE).<ref name="gordon">{{Cite web |title=Coral Energy Founder Tahir Garayev and His Network of Companies Help Russia Evade Sanctions – Investigation |url=https://english.gordonua.com/news/newsenglish/coral-energy-founder-tahir-garayev-and-his-network-of-companies-help-russia-evade-sanctions-investigation-1719887.html |access-date=2024-10-16 |website=Гордон {{!}} Gordon |language=ru}}</ref> Vetus Investments then controlled 100% of Coral Energy. According to international investigations, under the growing pressure on the company to circumvent the latest sanctions, Garaev transferred 60% of the shares of Novus Middle East DMCC to the company Pura Vida Holding Limited (UAE),<ref name="gordon"/> secured by the current management of 2Rivers: Talat Safarov (45%), Ahmed Kerimov (35%) and Anar Madatli (20%). At the beginning of 2024, CEO Talat Safarov, CFO Ahmed Kerimov, and CCO Anar Madatli (Azerbaijani nationals and UAE residents) completed the purchase of Garayev's remaining shares.<ref name="censor">{{cite web|url=https://m.censor.net/en/news/3510392/amelin_on_the_activities_of_russian_shadow_tankers_in_eu_waters|title="Shadow" tankers of RF carried out environmentally hazardous ship-to-ship transportation in EU waters for EUR 273 million - Amelin|website=censor.net|date=2024-09-17}}</ref> Garayev continues to exercise control over 2Rivers, despite not owning the company on paper. Anar Madatli is also Tahir Garayev’s brother-in-law.<ref name="censor"/>


According to available information, the company is under the closescrutiny of [[Office of Foreign Assets Control|US authorities]], which contributed to the change in ownership and the trader's name.<ref name=":1"/> Additionally, active UK and EU sanctions against Gatik Ship Management foreshadow near term actions by those authorities against 2Rivers.<ref name=":1"/><ref name="enkorr"/>
According to available information, the company is under the close scrutiny of [[Office of Foreign Assets Control|US authorities]], which contributed to the change in ownership and the trader's name.<ref name=":1"/><ref name="lemonde"/> Additionally, active UK and EU sanctions against Gatik Ship Management foreshadow near term actions by those authorities against 2Rivers.<ref name=":1"/><ref name="enkorr"/>


== Associated companies ==
== Associated companies ==
Line 35: Line 35:
The 2Rivers group of companies includes US-sanctioned Bellatrix Energy<ref name=":1">{{Cite news |title=Russia's sanctions-dodging is getting ever more sophisticated |url=https://www.economist.com/finance-and-economics/2023/03/02/russias-sanctions-dodging-is-getting-ever-more-sophisticated |access-date=2024-10-14 |newspaper=The Economist |issn=0013-0613}}</ref> and US-sanctioned Voliton DMCC.<ref>{{Cite web |date=2024-09-20 |title=Treasury Tightens the Price Cap with New Sanctions and Updated Guidance |url=https://home.treasury.gov/news/press-releases/jy2008 |access-date=2024-10-14 |website=U.S. Department of the Treasury |language=en}}</ref>
The 2Rivers group of companies includes US-sanctioned Bellatrix Energy<ref name=":1">{{Cite news |title=Russia's sanctions-dodging is getting ever more sophisticated |url=https://www.economist.com/finance-and-economics/2023/03/02/russias-sanctions-dodging-is-getting-ever-more-sophisticated |access-date=2024-10-14 |newspaper=The Economist |issn=0013-0613}}</ref> and US-sanctioned Voliton DMCC.<ref>{{Cite web |date=2024-09-20 |title=Treasury Tightens the Price Cap with New Sanctions and Updated Guidance |url=https://home.treasury.gov/news/press-releases/jy2008 |access-date=2024-10-14 |website=U.S. Department of the Treasury |language=en}}</ref>


Another company that shared directors with Coral Energy is Nord Axis which was established on 15 February 2022 (9 days prior to Russia's invasion of Ukraine).<ref name="wsj" /> In October 2023, Kerimov denied that Coral Energy had any associations to Nord Axis.<ref name=":0" /> Company filings for Nord Axis showed that Adalat Kazimili was the sole owner of Nord Axis in May 2022. Kazimili was also registered as an official representative of Coral Energy Turkey in 2022.<ref name=":2">{{Cite web |date=2024-03-01 |title=Death of Ivan Sechin: A Geopolitical Mystery? |url=https://whalehunting.projectbrazen.com/death-of-sechin-a-geopolitical-mystery/ |access-date=2024-10-14 |website=Whale Hunting |language=en}}</ref> In 2023, Nord Axis was operated by Etibar Eyyub who worked for Coral Energy.
Another company that shared directors with Coral Energy is Nord Axis<ref name="lemonde"/> which was established on 15 February 2022 (9 days prior to Russia's invasion of Ukraine).<ref name="wsj" /> Nord Axis was used by Coral (now 2Rivers) to purchase [[Trafigura]]’s 10% holding which was valued at EUR 7 billion.<ref>{{cite web|url=https://www.trafigura.com/news-and-insights/press-releases/2022/trafigura-completes-the-exit-of-its-investment-in-vostok-oil/|title=Trafigura completes the exit of its investment in Vostok Oil|publisher=[[Trafigura]]|website=trafigura.com|date=2022-07-13}}</ref><ref>{{cite web|url=https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/metals/071322-trafigura-sells-stake-in-russias-vostok-oil-project-to-hong-kong-based-trader-nord-axis|title=Trafigura sells stake in Russia's Vostok Oil project to Hong Kong-based trader Nord Axis|website=spglobal.com|publisher=S&P Global|date=2022-07-13}}</ref> In October 2023, Kerimov denied that Coral Energy had any associations to Nord Axis.<ref name=":0" /> Company filings for Nord Axis showed that Adalat Kazimili was the sole owner of Nord Axis in May 2022. Kazimili was also registered as an official representative of Coral Energy Turkey in 2022.<ref name=":2">{{Cite web |date=2024-03-01 |title=Death of Ivan Sechin: A Geopolitical Mystery? |url=https://whalehunting.projectbrazen.com/death-of-sechin-a-geopolitical-mystery/ |access-date=2024-10-14 |website=Whale Hunting |language=en}}</ref> In 2023, Nord Axis was operated by Etibar Eyyub who worked for Coral Energy.<ref name="lemonde"/>


Other companies associated to 2Rivers include Novus Middle East DMCC, Vetus Investments Limited, Apeiron Energy DMCC, Pontus Trading DMCC, Polar Energy SA, Matterhorn Group FZE and Alpen Energy LLC.<ref name=":4" />
Other companies associated to 2Rivers include Novus Middle East DMCC, Vetus Investments Limited, Apeiron Energy DMCC, Pontus Trading DMCC, Polar Energy SA, Matterhorn Group FZE and Alpen Energy LLC.<ref name=":4" />

Novus Middle East was used to purchase the Karimun oil storage terminal in southern [[Indonesia]], at the entrance to the [[Strait of Malacca]].<ref name="lemonde"/>


=== Vetus Investments ===
=== Vetus Investments ===
Line 57: Line 59:
== Trading ==
== Trading ==
2Rivers is involved in the global crude oil and product trading business. The company trades a number of oil and oil-derived products including: [[coal]], [[natural gas]], [[ethanol]], [[fuel oil]], VGO, [[bitumen]], [[Oil refinery|middle distillates]], and [[naphtha]].<ref>{{Cite web |date=2023-11-16 |title=Coral Energy |url=https://coralenergy-group.com/ |access-date=2024-10-14 |language=en-US}}</ref>
2Rivers is involved in the global crude oil and product trading business. The company trades a number of oil and oil-derived products including: [[coal]], [[natural gas]], [[ethanol]], [[fuel oil]], VGO, [[bitumen]], [[Oil refinery|middle distillates]], and [[naphtha]].<ref>{{Cite web |date=2023-11-16 |title=Coral Energy |url=https://coralenergy-group.com/ |access-date=2024-10-14 |language=en-US}}</ref>

2Rivers (formerly Coral) operates two silos — a “red team” that buys Russian crude and petroleum products (much of which is above the price cap) and a “blue team” that are Western-facing companies purporting to not have any involvement with [[Russia]].<ref name="lemonde"/> Accordingly, 2Rivers/Coral Energy has managed to keep Western financing for its activities, while it has also continued to trade illicitly.<ref name="lemonde"/>


In August 2022, Coral Energy became [[Pakistan]]'s top fuel oil supplier.<ref name=":8">{{Cite web |date=2022-08-03 |title=UAE's Coral Energy becomes Pakistan's top fuel oil supplier - data |website=[[Reuters]] |url=https://www.reuters.com/business/energy/uaes-coral-energy-becomes-pakistans-top-fuel-oil-supplier-data-2022-08-03/ |access-date=2024-10-16}}</ref>
In August 2022, Coral Energy became [[Pakistan]]'s top fuel oil supplier.<ref name=":8">{{Cite web |date=2022-08-03 |title=UAE's Coral Energy becomes Pakistan's top fuel oil supplier - data |website=[[Reuters]] |url=https://www.reuters.com/business/energy/uaes-coral-energy-becomes-pakistans-top-fuel-oil-supplier-data-2022-08-03/ |access-date=2024-10-16}}</ref>
Line 62: Line 66:
=== Delivery of Rosneft products to Ukraine ===
=== Delivery of Rosneft products to Ukraine ===


At the beginning of 2021, Coral Energy replaced another Swiss Company as the supplier of oil products to Ukraine. Rosneft had previously contracted with company associated(???) with [[Viktor Medvedchuk]], an exiled Ukrainian oligarch who was a key supporter of [[Viktor Yanukovych]], and [[Mikalai Varabei]] (also known as Nicolay Vorobei), to transport these exports to Ukraine. The US government sanctioned Varabei in August 2021 for aiding the [[Alexander Lukashenko|Belarusian regime]] through his oil trading business in [[Belarus]] and Medvedchuk in 2014 for his ties to former Ukrainian president Viktor Yanukovych. The EU sanctioned Varabei in December 2020 and Medvedchuk in May 2024.
At the beginning of 2021, Coral Energy replaced Proton Energy Group S.A. as the supplier of [[Rosneft]] products to Ukraine. Rosneft had previously contracted with Geneva-based Proton Energy, a company associated with [[Viktor Medvedchuk]], an exiled Ukrainian oligarch who was a key supporter of [[Viktor Yanukovych]], and [[Mikalai Varabei]] (also known as Nicolay Vorobei), to transport these exports to Ukraine via pipeline; however, Proton Energy terminated its trading operations in 2021 due increased risk of sanctions.<ref name="epravda">{{cite news|url=https://www.epravda.com.ua/news/2021/03/22/672184/|title=Україна знайшла нового постачальника продукції "Роснефти" – ЗМІ|work=[[Ekonomichna Pravda]]|date=2021-03-22}}</ref> The US government sanctioned Varabei in August 2021 for aiding the [[Alexander Lukashenko|Belarusian regime]] through his oil trading business in [[Belarus]] and Medvedchuk in 2014 for his ties to former Ukrainian president Viktor Yanukovych. The EU sanctioned Varabei in December 2020 and Medvedchuk in May 2024.


The operator of 2Rivers/Coral Energy Group in Ukraine is Alpen Trade, a company that Tahir Garayev founded in 2016. Together with the State Register of the Russian Federation, the authority of Alpen Trade, Safarov Javid Mursal Ogli is the current director.<ref name="epravda">{{cite web |date=2021-03-22 |title=Україна знайшла нового постачальника продукції "Роснефти" – ЗМІ |url=https://www.epravda.com.ua/news/2021/03/22/672184/ |website=epravda.com |publisher=[[Ukrainska Pravda]]}}</ref>
The operator of 2Rivers/Coral Energy Group in Ukraine is Alpen Trade, a company that Tahir Garayev founded in 2016. Together with the State Register of the Russian Federation, the authority of Alpen Trade, Safarov Javid Mursal Ogli is the current director.<ref name="epravda"/>


In addition to taking over Medvedchuk’s Rosneft contract into Ukraine, 2Rivers also acquired the Latvian B.L.B. Baltijas Terminal.<ref name="latvia">{{cite web|url=https://en.rebaltica.lv/2022/01/behind-the-sanctions-how-an-estonian-latvian-conglomerate-benefits-from-record-trade-with-the-lukashenko-regime/|title=Behind the Sanctions: How an Estonian-Latvian Conglomerate Benefits from Record Trade with the Lukashenko Regime|website=en.rebaltica.lv|author=Holger Roonemaa, Sanita Jemberga, Alexander Yaroshevich, Raimo Poom|date=2022-01-30}}</ref>
In addition to taking over Medvedchuk’s Rosneft contract into Ukraine, 2Rivers also acquired the Latvian B.L.B. Baltijas Terminal.<ref name="latvia">{{cite web|url=https://en.rebaltica.lv/2022/01/behind-the-sanctions-how-an-estonian-latvian-conglomerate-benefits-from-record-trade-with-the-lukashenko-regime/|title=Behind the Sanctions: How an Estonian-Latvian Conglomerate Benefits from Record Trade with the Lukashenko Regime|website=en.rebaltica.lv|author=Holger Roonemaa, Sanita Jemberga, Alexander Yaroshevich, Raimo Poom|date=2022-01-30}}</ref>

Latest revision as of 15:42, 18 November 2024

2Rivers
Company typePrivate
Industry
Founded2010; 14 years ago (2010)
FounderTahir Garayev
HeadquartersDubai, UAE
Number of locations
3
Area served
Worldwide (with a focus on Russia)[1]
Key people
  • Etibar Eyyub[2]
  • Talat Safarov
  • Anar Madatli
  • Ahmed Kerimov[3]
Services
OwnerPura Vida Holding Limited, UAE.[5]
Number of employees
300+ (as of October 2023)[6]
Website2rivers-group.com

2Rivers,[7] formerly Coral Energy, is a Dubai-based oil trading company engaged in the sale and export of Russian crude oil and petroleum products.[8][9] 2Rivers was founded by Azerbaijani citizen Tahir Gadir oghlu Garayev (Tahir Garayev) in 2010.[3] 2Rivers, according to journalistic investigations, has a close relationship with Igor Sechin[2] and Rosneft.[2][10] Since 2022, 2Rivers has quietly grown to become the largest trader circumventing Western sanctions on Russian crude and petroleum exports, mainly from Rosneft.[10][9] 2Rivers operates through a web of companies that appear to be unaffiliated, but are controlled by the 2Rivers’ executive team. This includes dozens of trading companies established in the DMCC freezone of the UAE, as well as ship management and operations companies.[11]

Prior to the 2022 Russian invasion of Ukraine, 2Rivers – at that time Coral Energy – was based in Geneva.[3] After the invasion, 2Rivers moved its headquarters to Dubai and has offices in Singapore and Geneva.[3] The company announced that it closed its Moscow office in 2022, however, investigations concluded that the company continues to manage an office there under a different name.[10][12]

A report from The Wall Street Journal in early 2024 reported that Coral Energy controls at least 100 vessels through seemingly unaffiliated shell companies.[2][10] These include Gatik Ship Management, Gaurik Ship Management, and Buena Vista Shipping. At least five of these vessels have been sanctioned by the UK and EU.[13] These vessels continue to carry crude and petroleum products purchased by 2Rivers trading companies in violation of Western sanctions.[13][11]

History

[edit]

2Rivers Group (Coral Energy) was founded by Tahir Garayev in 2010.[3] According to market sources, 2Rivers most likely has ties to the functionaries of the ruling elite of Azerbaijan.[14] Etibar Eyyub, Azerbaijani citizen, is the main point of contact between 2Rivers and Igor Sechin.[2] He maintains a close relationship with Garayev and is instrumental in directing 2Rivers’ activities, but does not have an official ownership stake on paper.[11]

Until the end of 2023, Garayev owned 100% of 2Rivers (then Coral Energy) through a complex corporate structure. Garayev owned 100% of Novus Middle East DMCC (UAE), which controlled 100% of Vetus Investments Limited (UAE).[5] Vetus Investments then controlled 100% of Coral Energy. According to international investigations, under the growing pressure on the company to circumvent the latest sanctions, Garaev transferred 60% of the shares of Novus Middle East DMCC to the company Pura Vida Holding Limited (UAE),[5] secured by the current management of 2Rivers: Talat Safarov (45%), Ahmed Kerimov (35%) and Anar Madatli (20%). At the beginning of 2024, CEO Talat Safarov, CFO Ahmed Kerimov, and CCO Anar Madatli (Azerbaijani nationals and UAE residents) completed the purchase of Garayev's remaining shares.[15] Garayev continues to exercise control over 2Rivers, despite not owning the company on paper. Anar Madatli is also Tahir Garayev’s brother-in-law.[15]

According to available information, the company is under the close scrutiny of US authorities, which contributed to the change in ownership and the trader's name.[13][11] Additionally, active UK and EU sanctions against Gatik Ship Management foreshadow near term actions by those authorities against 2Rivers.[13][14]

Associated companies

[edit]

The 2Rivers group of companies includes US-sanctioned Bellatrix Energy[13] and US-sanctioned Voliton DMCC.[16]

Another company that shared directors with Coral Energy is Nord Axis[11] which was established on 15 February 2022 (9 days prior to Russia's invasion of Ukraine).[2] Nord Axis was used by Coral (now 2Rivers) to purchase Trafigura’s 10% holding which was valued at EUR 7 billion.[17][18] In October 2023, Kerimov denied that Coral Energy had any associations to Nord Axis.[6] Company filings for Nord Axis showed that Adalat Kazimili was the sole owner of Nord Axis in May 2022. Kazimili was also registered as an official representative of Coral Energy Turkey in 2022.[19] In 2023, Nord Axis was operated by Etibar Eyyub who worked for Coral Energy.[11]

Other companies associated to 2Rivers include Novus Middle East DMCC, Vetus Investments Limited, Apeiron Energy DMCC, Pontus Trading DMCC, Polar Energy SA, Matterhorn Group FZE and Alpen Energy LLC.[20]

Novus Middle East was used to purchase the Karimun oil storage terminal in southern Indonesia, at the entrance to the Strait of Malacca.[11]

Vetus Investments

[edit]

According to a 2022 published analytical report by Transparency International, between 2014 and 2015, Mikhail Gutseriev and Kirill Shamalov (Putin’s former son-in-law) was involved in a Czech-Russian money-laundering scheme used for transfers of illicit funds from Russia to the Czech Republic.[21] Czech citizen, Taras Moroz, who serves a director of Czech-based Vetus Investments S.R.O.—a subsidiary of 2Rivers/Coral Energy’s holding company Vetus Investments—also appeared in corporate records of several Czech shell companies used by Gutseriev and Shamalov in their money laudering structure.[21] Organizers of the scheme concluded fictitious contracts for the purchase of Eurobonds between Czech and Russian companies, subsequently entering intoarbitral proceedings and influencing the decision of the commercial arbitration court in order to effectuate a transfer of illicit funds.[21]

In 2021, Coral purchased a cargo from Mikhail Gutseriev, in violation of UK and EU sanctions at the time.

Russian shadow fleet

[edit]

A report from The Wall Street Journal in early 2024 reported that 2Rivers owns a large part of the so-called shadow fleet, with at least 100 vessels, transporting Russian crude, naphtha and other petroleum products.[2] WSJ writes that the founder of the company, Tahir Garayev, speaks for the shadow fleet and the shadow traders who operate on behalf of Russian President Vladimir Putin through the Rosneft executive Igor Sechin.[2] On 17 October, the UK sanctioned 4 of the 2Rivers vessels (managed by Gatik Ship Management): VARUNA (IMO 9332810) ; SAI BABA (IMO 9321691) ; ARTEMIS (IMO 9317949) ; ANTAEUS (IMO 9299733).[2] The New York Times investigation found that the vessel, JAGUAR (IMO 9293002) which was managed by Gatik Ship Management, carried crude for Voliton DMCC, a Coral/2Rivers shell trading company that was sanctioned by the US on 20 December 2023.[22]

According to the Financial Times, based on research reports from the Kyiv School of Economics (KSE) Institute, Russia has increased the capacity of its dark tanker fleet by up to 70%.[23] By the end of 2024, 70% of Russian crude oil will already be transported by a shadow fleet, which will provide 89% of crude oil exports and 38% of petroleum product exports by sea, which allows Russia to bypass sanctions. A significant portion of these vessels are owned and operated by a number of shell companies in India, Mauritius, the United Arab Emirates and other jurisdictions. According to investigations, these companies are controlled by the founder of 2Rivers/Coral Energy, Tahir Garayev, and Etibar Eyyub.[24]

On September 9, 2024, Vladislav Vlasiuk, Ukrainian Commissioner for Sanctions Policy and Special Advisory to President Volodymyr Zelenskyy confirmed that one of the largest transport companies that helps the Russian Federation export oil is 2Rivers/Coral Energy.[25]

2Rivers/Coral Energy complete false documents for transactions, conduct transfers in the open sea to avoid being seen, and also have offshore bank accounts in order to capture energy sales from the Russian Federation itself. The DMCC freezone in the UAE is the primary location from which 2Rivers operates their shadow network.[25]

— Vladislav Vlasiuk

Trading

[edit]

2Rivers is involved in the global crude oil and product trading business. The company trades a number of oil and oil-derived products including: coal, natural gas, ethanol, fuel oil, VGO, bitumen, middle distillates, and naphtha.[26]

2Rivers (formerly Coral) operates two silos — a “red team” that buys Russian crude and petroleum products (much of which is above the price cap) and a “blue team” that are Western-facing companies purporting to not have any involvement with Russia.[11] Accordingly, 2Rivers/Coral Energy has managed to keep Western financing for its activities, while it has also continued to trade illicitly.[11]

In August 2022, Coral Energy became Pakistan's top fuel oil supplier.[27]

Delivery of Rosneft products to Ukraine

[edit]

At the beginning of 2021, Coral Energy replaced Proton Energy Group S.A. as the supplier of Rosneft products to Ukraine. Rosneft had previously contracted with Geneva-based Proton Energy, a company associated with Viktor Medvedchuk, an exiled Ukrainian oligarch who was a key supporter of Viktor Yanukovych, and Mikalai Varabei (also known as Nicolay Vorobei), to transport these exports to Ukraine via pipeline; however, Proton Energy terminated its trading operations in 2021 due increased risk of sanctions.[28] The US government sanctioned Varabei in August 2021 for aiding the Belarusian regime through his oil trading business in Belarus and Medvedchuk in 2014 for his ties to former Ukrainian president Viktor Yanukovych. The EU sanctioned Varabei in December 2020 and Medvedchuk in May 2024.

The operator of 2Rivers/Coral Energy Group in Ukraine is Alpen Trade, a company that Tahir Garayev founded in 2016. Together with the State Register of the Russian Federation, the authority of Alpen Trade, Safarov Javid Mursal Ogli is the current director.[28]

In addition to taking over Medvedchuk’s Rosneft contract into Ukraine, 2Rivers also acquired the Latvian B.L.B. Baltijas Terminal.[29]

Cyprus-based Lostrita Investments is the beneficial owner of Latvia-based Venta Energy Services SIA. Venta Energy Services, which operates the B.L.B. Baltijas Terminal, is owned by Kamran Asgarov. 2Rivers’ controls the Latvia-based oil export terminal through an associated partnership, Venta Energy Services.[29] Asgarov, as well as 2Rivers executives Ahmad Kerimov and Talat Safarov are listed as officers of Lostrita Investments.

Separately, in 2022, Ivano-Frankivsk city court froze assets belonging to both 2Rivers/Coral Energy and its subsidiary Apeiron Energy after they were found to have illegally imported jet fuel into Ukraine from Russia (Case № 344/7508/22).

Russian oil trading

[edit]

When Trafigura wound down its relationship with Rosneft in 2022, Rosneft asked Coral Energy to take Trafigura's place.[2]

In July 2022, Coral Energy outbid China's Sinopec for the purchase of Russian Eastern Siberia–Pacific Ocean (ESPO) crude oil cargoes.[27]

In December 2022, Coral Energy bought 121,000 barrels of Russian crude oil a day from Surgutneftegas.[30]

In April 2023, Coral Energy were linked to the use of Shadow fleet vessels.[4]

In November 2023, it was reported that Coral Energy were re-selling Russian oil in several countries across Sub-Saharan Africa.[31]

In March 2024, Etibar Eyyub, together with his partner Tahir Garayev, were reported to be the traders of 80% of all Russian oil exports, including Rosneft's.[19]

Refineries and future production

[edit]

In 2022, following the invasion of Ukraine by Russia, Trafigura sold its 10% share in the Vostok oil project to Etibar Eyyub and his company Nord Axis.[2][32]

It was reported in 2023 that Coral Energy was assigned a prepayment and off take agreement with Nayara Energy refinery in India (which was 49% owned by Rosneft), that was originally established by Bellatrix Energy.[13]

Sanctions

[edit]

In October 2024, it was reported that the Office of Foreign Assets Control were investigating 2Rivers for breaching sanctions relating to the Russian oil price cap.[33]

Tahir Garayev is sanctioned by the National Security and Defense Council of Ukraine.[34] Despite the management buyout, it was reported in September 2024, that Tahir Garayev continues to control 2Rivers.[20]

References

[edit]
  1. ^ "Russia's ghost fleet: Moscow's new oil routes". LeMonde. 2023-08-06. Retrieved 2024-10-14.
  2. ^ a b c d e f g h i j k Joe Wallace, Anna Hirtenstein, Costas Paris (2024-02-19). "The Secret Oil-Trading Ring That Funds Russia's War". wsj.com. The Wall Street Journal.{{cite web}}: CS1 maint: multiple names: authors list (link)
  3. ^ a b c d e Julia Payne (2024-06-25). "Management buys out oil trader Coral Energy". reuters.com. Reuters.
  4. ^ a b "Lloyd's List Daily Briefing - 5th April 2023" (PDF). 2023-04-05. Retrieved 2024-10-14.
  5. ^ a b c "Coral Energy Founder Tahir Garayev and His Network of Companies Help Russia Evade Sanctions – Investigation". Гордон | Gordon (in Russian). Retrieved 2024-10-16.
  6. ^ a b "Interview with Ahmed Kerimov". haqqin.az. Retrieved 2024-10-14.
  7. ^ "Oil trader Coral Energy rebrands as 2Rivers Group after buyout". Reuters. 2024-06-29.
  8. ^ Anna Hirtenstein, Joe Wallace (2022-05-27). "Little-Known Commodity Traders Help Russia Sell Oil". wsj.com. The Wall Street Journal.
  9. ^ a b Archie Hunter, Patrick Sykes, Jack Farchy (2023-08-05). "Upstart Traders of Russian Oil Had Representatives in Common". bloomberg.com. Bloomberg.{{cite web}}: CS1 maint: multiple names: authors list (link)
  10. ^ a b c d David Ignatius (2024-06-18). "A wary White House views Russia oil sanctions through lens of inflation". washingtonpost.com. The Washington Post.
  11. ^ a b c d e f g h i Julien Bouissou, Anne Michel and Poline Tchoubar (2024-10-30). "Shell companies, ghost ships and secret traders: How Russia circumvents Western oil sanctions". lemonde.fr. Le Monde.
  12. ^ "Кто и как сегодня торгует российской нефтью". moscowtimes.ru. The Moscow Times. 2022-05-29.
  13. ^ a b c d e f "Russia's sanctions-dodging is getting ever more sophisticated". The Economist. ISSN 0013-0613. Retrieved 2024-10-14.
  14. ^ a b "Перевзулися: Coral Energy стає 2Rivers Group". enkorr.ua. 2024-08-22.
  15. ^ a b ""Shadow" tankers of RF carried out environmentally hazardous ship-to-ship transportation in EU waters for EUR 273 million - Amelin". censor.net. 2024-09-17.
  16. ^ "Treasury Tightens the Price Cap with New Sanctions and Updated Guidance". U.S. Department of the Treasury. 2024-09-20. Retrieved 2024-10-14.
  17. ^ "Trafigura completes the exit of its investment in Vostok Oil". trafigura.com. Trafigura. 2022-07-13.
  18. ^ "Trafigura sells stake in Russia's Vostok Oil project to Hong Kong-based trader Nord Axis". spglobal.com. S&P Global. 2022-07-13.
  19. ^ a b "Death of Ivan Sechin: A Geopolitical Mystery?". Whale Hunting. 2024-03-01. Retrieved 2024-10-14.
  20. ^ a b "Coral Energy ta kompaniya hto dopomagaye rosiji obhoditi sankci". 2024-09-23. Retrieved 2024-10-14.
  21. ^ a b c Kendo Nagasaki (2024-10-18). "Coral Energy: Putin's Bitch?".
  22. ^ Christiaan Triebert, Blacki Migliozzi, Alexander Cardia, Muyi Xiao, David Botti (2023-05-30). "Fake Signals and American Insurance: How a Dark Fleet Moves Russian Oil". nytimes.com. The New York Times.{{cite web}}: CS1 maint: multiple names: authors list (link)
  23. ^ Anastasia Stognei (2024-10-14). "Russia's shadow fleet grows despite western crackdown". ft.com. Financial Times.
  24. ^ "How Russia's 'shadow fleet' gets its ships". ft.com. Financial Times.
  25. ^ a b "Власюк: Однією з найбільших транспортних компаній, що допомагають Росії щодо експорту нафти, є Coral Еnergy". zn.ua (in Ukrainian). Dzerkalo Tyzhnia. 2024-09-09.
  26. ^ "Coral Energy". 2023-11-16. Retrieved 2024-10-14.
  27. ^ a b "UAE's Coral Energy becomes Pakistan's top fuel oil supplier - data". Reuters. 2022-08-03. Retrieved 2024-10-16.
  28. ^ a b "Україна знайшла нового постачальника продукції "Роснефти" – ЗМІ". Ekonomichna Pravda. 2021-03-22.
  29. ^ a b Holger Roonemaa, Sanita Jemberga, Alexander Yaroshevich, Raimo Poom (2022-01-30). "Behind the Sanctions: How an Estonian-Latvian Conglomerate Benefits from Record Trade with the Lukashenko Regime". en.rebaltica.lv.{{cite web}}: CS1 maint: multiple names: authors list (link)
  30. ^ "New Kings of Russian Oil Were These Six Traders in December". Bloomberg.com. 2023-03-21. Retrieved 2024-10-14.
  31. ^ "Africa : From Dubai to Cape Town, upstart trader Coral Energy rolls out African offensive - 20/11/2023". Africa Intelligence. 2024-10-16. Retrieved 2024-10-16.
  32. ^ Abebe, Agathe Duparc, Robert Bachmann and Manuel. "Russian oil trade in Switzerland: a fake farewell?". www.publiceye.ch. Retrieved 2024-10-14.{{cite web}}: CS1 maint: multiple names: authors list (link)
  33. ^ "Africa : Dubai traders Coral Energy and Demex in Washington's sights over sale of Russian oil". Africa Intelligence. 2024-10-15. Retrieved 2024-10-15.
  34. ^ "Haraiev Takhir Hadir Ohly". OpenSanctions.org. 1980-01-13. Retrieved 2024-10-14.
[edit]
Retrieved from "https://en.wikipedia.org/enwiki/w/index.php?title=2Rivers&oldid=1258180753"