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2Rivers

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

2Rivers,[4] formerly Coral Energy, is a Dubai-based oil trading company.[5][6] 2Rivers was founded by Azerbaijani citizen Tahir Gadir oghlu Garayev (Tahir Garayev) in 2010.[2] 2Rivers operates multiple corporate entities cross the world, including in Singapore, the UAE, as well as ship management and operations companies.[7]

Headquartered in Dubai, with additional offices in Singapore and Geneva, 2Rivers Group serves a diverse portfolio of clients worldwide. The company's experienced professionals and innovative approach drive its mission to deliver reliable energy solutions with a strong commitment to sustainability.

The company announced that it closed its Moscow office in 2022. [8][9]

A report from The Wall Street Journal in early 2024 reported that Coral Energy controls at least 100 vessels through seemingly unaffiliated shell companies.[1][8]

History

2Rivers Group (Coral Energy) was founded by Tahir Garayev in 2010.[2] 

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).[10] 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),[10] 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.[11]

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.[12][7]

Associated companies

The 2Rivers group maintain a global network of companies, including: Novus Middle East DMCC, Vetus Investments Limited, Apeiron Energy DMCC, Pontus Trading DMCC, Polar Energy SA, Matterhorn Group FZE and Alpen Energy LLC.[13]

Novus Middle East was used to purchase the Karimun oil storageterminal in southern Indonesia, at the entrance to the Strait of Malacca.[7]

Vetus Investments

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.[14] 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.[14] 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.[14]

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

Russian shadow fleet

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.[1] 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.[1] 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).[1] 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.[15]

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%.[16] 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.[17]

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.[18]

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.[18]

— Vladislav Vlasiuk

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, middle distillates, and naphtha.[19]

In August 2022, Coral Energy became Pakistan's top fuel oil supplier.[20]

Delivery of Rosneft products to Ukraine

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.[21] 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.[21]

In addition to taking over Medvedchuk’s Rosneft contract into Ukraine, 2Rivers also acquired the Latvian B.L.B. Baltijas Terminal.[22]

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.[22] 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).

Sanctions

Tahir Garayev is sanctioned by the National Security and Defense Council of Ukraine, however it does not provide any reasoning for the sanctions. [23]

References

  1. ^ a b c d e 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)
  2. ^ a b c Julia Payne (2024-06-25). "Management buys out oil trader Coral Energy". reuters.com. Reuters.
  3. ^ "Interview with Ahmed Kerimov". haqqin.az. Retrieved 2024-10-14.
  4. ^ "Oil trader Coral Energy rebrands as 2Rivers Group after buyout". Reuters. 2024-06-29.
  5. ^ Anna Hirtenstein, Joe Wallace (2022-05-27). "Little-Known Commodity Traders Help Russia Sell Oil". wsj.com. The Wall Street Journal.
  6. ^ 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)
  7. ^ a b c 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.
  8. ^ a b David Ignatius (2024-06-18). "A wary White House views Russia oil sanctions through lens of inflation". washingtonpost.com. The Washington Post.
  9. ^ "Кто и как сегодня торгует российской нефтью". moscowtimes.ru. The Moscow Times. 2022-05-29.
  10. ^ a b Cite error: The named reference gordon was invoked but never defined (see the help page).
  11. ^ ""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.
  12. ^ "Russia's sanctions-dodging is getting ever more sophisticated". The Economist. ISSN 0013-0613. Retrieved 2024-10-14.
  13. ^ "Coral Energy ta kompaniya hto dopomagaye rosiji obhoditi sankci". 2024-09-23. Retrieved 2024-10-14.
  14. ^ a b c Kendo Nagasaki (2024-10-18). "Coral Energy: Putin's Bitch?".
  15. ^ 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)
  16. ^ Anastasia Stognei (2024-10-14). "Russia's shadow fleet grows despite western crackdown". ft.com. Financial Times.
  17. ^ "How Russia's 'shadow fleet' gets its ships". ft.com. Financial Times.
  18. ^ 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.
  19. ^ "Coral Energy". 2023-11-16. Retrieved 2024-10-14.
  20. ^ "UAE's Coral Energy becomes Pakistan's top fuel oil supplier - data". Reuters. 2022-08-03. Retrieved 2024-10-16.
  21. ^ a b "Україна знайшла нового постачальника продукції "Роснефти" – ЗМІ". epravda.com. Ukrainska Pravda. 2021-03-22.
  22. ^ 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)
  23. ^ "Haraiev Takhir Hadir Ohly". OpenSanctions.org. 1980-01-13. Retrieved 2024-10-14.
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