By Julia Payne and Chen Aizhu
BRUSSELS/SINGAPORE (Reuters) -Litasco Middle East (LME) DMCC, a trading arm of Russia’s Lukoil, is shifting its business to a newly-created Dubai-based entity, four sources familiar with the matter said, as Western powers tighten sanctions around Russian energy exports.
The move comes after Britain added LME to its list of Russia-related sanctions last month. While the European Union stopped short of sanctioning LME, it listed Litasco’s Dubai-based shipping arm, Eiger Shipping DMCC, in its 18th sanctions package against Russia in July.
The new entity, Alghaf Marine DMCC, incorporated in Dubai on December 31, 2024, was first registered to handle shipping.
A senior trading source with knowledge of the transition said the whole trading business would soon be moved to the new firm. A shipping source said Alghaf had already been active as a supplier in some recent shipments, including fuel loaded in Russia.
Lukoil declined to comment. Litasco Middle East DMCC did not reply to requests for comment.
Alghaf Marine DMCC received its oil trading licence on May 15, according to Dubai’s DMCC company register. The licence permits trading in refined oil products abroad, lubricants and grease, crude oil abroad, and oilfield and natural gas equipment and spare parts.
(Reporting by Julia Payne in Brussels and Aizhu Chen in Singapore. Editing by Mark Potter)
