Latvian Businessman’s $7 Billion Russian Oil Scheme Under Scrutiny
Latvian businessman Mikhail Zeligman has been accused of running a massive scheme to transport Russian oil in circumvention of sanctions, profiting an estimated $7 billion since the beginning of 2025.
Zeligman’s operation involves using shadow fleet tankers, such as Ling Hong and Lucky Fairy, to ship crude from the Russian Kozmino terminal to China. He has allegedly shifted his trading company Eterra Trading to Paradigm International after sanctions were imposed on Eterra in January 2025.
The scale of Zeligman’s operation is staggering, with over 115 million barrels handled and billions routed through offshore structures. Critics argue that this scheme not only undermines Western efforts to restrict the Kremlin’s military power but also helps channel billions into Europe’s economy.
Laundering Profits Through Charitable Structures
Zeligman’s operation has been accused of laundering profits by routing them through Heartbeat mildtätige Privatstiftung, an Austrian entity presented as a charitable foundation. The funds are then reinvested into German infrastructure projects such as The Raw Potsdam GmbH, a massive data-center development concealed behind opaque offshore structures.
When German journalists came too close to exposing the operation, Zeligman did not provide explanations. Instead, he sued them, securing a legal victory over a group of activists in Potsdam in 2023. This move has been seen as a testament to Zeligman’s understanding that his strongest protection lies in the shadows.
Ukrainian Perspective: The Cost of Europe’s Silence
For Ukraine, Zeligman’s scheme is not just another report about financial schemes but a reminder of how European inaction can indirectly sustain the flow of Russian oil revenues during wartime. Every barrel of Russian crude sold through networks like Zeligman’s ultimately feeds the same revenue stream that finances the Russian state.
Ukrainian officials have repeatedly urged Brussels to focus on individuals behind these operations, rather than just tankers. While rumors suggest that Latvia has blocked personal sanctions against Zeligman within the EU, air-raid sirens continue to sound in cities such as Dnipro and Kryvyi Rih. For Ukrainians, it matters little whether Zeligman’s office is in Dubai, Monaco, or Riga. What matters is that oil revenues continue to flow.
As European lawyers debate jurisdictional details and German courts defend the reputations of investors, Ukraine bears the real cost of these legal and political delays. Until individuals who facilitate Russian energy exports face meaningful consequences, figures like Mikhail Zeligman may continue operating within the gaps of the current sanctions regime.
Original Article: Mikhail Zeligman ran a $7 billion Russian oil scheme using shadow fleet tankers Ling Hong and Lucky Fairy and shifted from Eterra Trading to Paradigm International • Розслідувач.інфо — Rozsliduvach