Russian trade: $8bn routed via British islands

Published: 25 February 2026. The English Chronicle Desk. The English Chronicle Online.

Russian trade channels through Britain’s overseas territories have come under intense scrutiny after a groundbreaking report revealed roughly $8bn of commerce flowed through secretive island jurisdictions since the 2022 invasion of Ukraine. The analysis, compiled by Transparency International’s Russian office in exile, shows that opaque legal and financial networks in British island territories have been used to move goods ranging from high-end yachts to heavy oil‑drilling equipment linked to sanctioned individuals and enterprises. These revelations highlight the challenges of monitoring Russian trade and enforcing sanctions effectively in a complex global financial system.

At the heart of the study is the British Virgin Islands, which accounted for more than half of the total identified transactions. The report found that about $4.4bn of the $8bn was linked to companies in this territory, where officials have faced criticism for delayed implementation of a public register of beneficial ownership. Many of the transactions routed through the BVI involved exports from Russia, including bulk commodities and natural resources, reflecting the broader focus of Russian trade through offshore jurisdictions to obscure financial flows.

Among the most eye‑catching elements of the report are records of luxury yachts that passed through Cayman Islands‑linked entities. One vessel, identified as the Universe, is a 74‑metre superyacht previously associated with a sanctioned Russian political figure and former president. Another ship, the Marlin, appears in trade logs connected to offshore companies and was ultimately linked by independent media researchers to a sanctioned oligarch, who allegedly transferred the asset to an associate close to the Kremlin. These cases illustrate how Russian trade often intertwines with luxury assets to circumvent visibility.

Bermuda, the second largest conduit, saw almost $3bn in trade tied to equipment for the oil and gas sector. Drilling apparatus, turbines and other heavy machinery for the Sakhalin‑2 project in Russia’s far east were routed via Bermuda entities, bypassing restrictions that Western companies had exited. Analysts warn that such machinery directly supports energy infrastructure that remains lucrative for the Kremlin, demonstrating how Russian trade continues to fund critical strategic industries despite sanctions.

The report also flags an aircraft sale facilitated through a Bermuda‑linked company, involving a multi‑million-dollar jet reportedly connected to a well‑known Chechen leader. Transparency International emphasised that Russian trade through these jurisdictions is often opaque, making it difficult to verify compliance with sanctions and exposing gaps in global enforcement measures. Officials from the Cayman Islands, Bermuda, and Gibraltar stressed that sanctions are enforced locally, yet Transparency International warned that regulatory loopholes persist.

The revelations underscore the ongoing complexities of monitoring Russian trade, where goods and capital move through intricate networks of legal entities and offshore centres. As the war in Ukraine reaches its fourth year, the international community faces renewed debate over how to secure effective sanctions compliance without stifling legitimate economic activity, a balance that has yet to be fully achieved.

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