Russian Trade Flows Through British Offshore Havens Despite Sanctions

Despite international sanctions, logistical disruptions, and the exodus of foreign companies, Russia's foreign trade has not ceased but has instead been rerouted. A new study reveals that Russian businesses continue to utilize companies registered in British Overseas Territories to purchase equipment, sell raw materials, and transfer assets.

The research estimates that from February 2022 to January 2025, the volume of trade channeled through such structures amounted to at least $8 billion. During this period, over 29,000 transactions were conducted. More than 95% of these operations were linked to the British Virgin Islands and Bermuda—jurisdictions known for their limited access to information about company owners, which complicates tracking the true beneficiaries and financial flows.

This opacity makes offshore zones a convenient tool under sanctions, according to rights advocates. Intermediary companies help obscure supply chains and complicate oversight of money movements.

The British Virgin Islands feature most prominently in export operations. Researchers suggest this could indicate attempts to conceal revenues from raw material sales. Goods passing through these offshore hubs reportedly include petroleum products, coal from occupied Ukrainian territories, equipment for the oil and gas sector, helicopters, business jets, and luxury items.

The study also highlights at least 160 instances involving the transfer of yachts from or into Russia via offshore structures between 2022 and early 2024. This pattern indicates that such companies are used not only for trade but also for owning and relocating high-value assets.

Furthermore, transactions have involved metals subject to UK sanctions, potentially pointing to violations of restrictive measures.