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Sources say that Russia's Lukoil has set up a new oil-trading arm in Dubai.

Four sources familiar with this matter have confirmed that Litasco Middle East DMCC (LME), a trading division of Russia's Lukoil is moving its business to a newly created entity based in Dubai, as Western powers tighten their sanctions on Russian energy exports.

Last month, Britain included LME on its list of sanctions against Russia. The European Union did not sanction LME but listed Litasco’s Dubai-based shipping company, Eiger Shipping DMCC in its 18th package of sanctions against Russia.

Alghaf Marine DMCC was the first entity to be registered in Dubai for shipping. It was incorporated on December 31st, 2024.

According to a senior source familiar with the transition, the entire trading business will be transferred soon to the new company. Alghaf was already active in recent shipments including fuel loaded into Russia, according to a shipping source.

Lukoil refused to comment. Litasco Middle East DMCC declined to comment.

According to the Dubai DMCC Company Register, Alghaf Marine DMCC was granted its oil trading license on 15 May. The license allows trading of refined oil products, lubricants, greases, crude oil, oilfield and gas equipment, and spare parts. Reporting by Julia Payne, Brussels; and Aizhu Chan, Singapore. Mark Potter edited the article.

(source: Reuters)