EU Launches Investigation Into Potential Rebranded Russian Oil Imports via Turkey

The European Union’s anti-fraud agency, OLAF, has launched an investigation into the potential export of rebranded Russian oil via Turkey into the EU, Politico reported on November 5, citing two anonymous sources.

OLAF, responsible for investigating fraud and corruption affecting the EU, can recommend that member states take action or initiate criminal investigations based on its findings.

In late 2022, the EU imposed a ban on Russian oil imports as part of its strategy to reduce reliance on Russian fossil fuels, allowing temporary exceptions only for landlocked nations like Hungary, Slovakia, and the Czech Republic.

An earlier Politico investigation suggested that Turkish ports have likely been accepting Russian oil, rebranding it, and then exporting it to the EU, exploiting a loophole in the sanctions.

Turkey has long been identified as a key facilitator in helping Russia circumvent Western sanctions imposed after the invasion of Ukraine, according to Politico.

Politico’s findings include evidence of corresponding spikes in Russian oil imports and exports from Turkish ports, with analysts noting that Turkey rebrands Russian oil and provides documentation indicating a "non-sanctioned" origin for EU-bound shipments.

According to Politico, this loophole reportedly brought Moscow up to €3 billion ($3.3 billion) in revenue for its war efforts in 2023.

The exact number of tankers involved in transporting Russian oil is unknown, as estimates vary. By March 2023, CNN reported about 600 tankers of various capacities. Today, Russia is believed to directly or indirectly control between 1,400 and 1,800 tankers, making it the largest operator of a shadow fleet.