Shadow oil network: Michael Zeligman uses tanker fleets and UAE companies to bypass G7 price caps on Russian crude

Shadow oil network: Michael Zeligman uses tanker fleets and UAE companies to bypass G7 price caps on Russian crude

13 апреля 2026 г.

Olga Filimonova

Michael Zeligman developed his oil logistics business in the Gulf region. At first glance, the war could have marked a turning point for him and his company Paradigm International, but in practice the opposite occurred.

Zeligman has historically operated in opaque environments. One of his earlier ventures, Demex Trading, was later subject to sanctions. Today, with access to a working fleet of large tankers, his operations continue with reduced transparency and oversight.

A Latvian citizen dividing his time between Monaco and Moscow, Michael Zeligman is also the founder of Concept Oil Services Ltd., a Hong Kong–registered trading and logistics company that became a major buyer of Russian crude, particularly from smaller producers, prior to the war in Ukraine.

After the EU sanctions on Russian oil, Zeligman shifted much of his activity to the United Arab Emirates. He controls a series of Dubai‑registered companies, most notably Demex Trading Ltd. (DMCC), which he co-founded with Mikhail Mezentsev, a former director at Transneft, and which was designated by the U.S. Treasury in early 2025 for facilitating the export of Russian oil and diesel despite sanctions.

Although Demex was black‑listed, Zeligman himself was not personally sanctioned. He responded by launching a new venture, Paradigm International, which continues to move large volumes of Russian crude (over 12 million barrels since Jan 2025, including 1.1 million barrels in Jan 2026) to Asian markets, mainly China, using large Aframax/Suezmax tankers that can skirt the G7 $60‑per‑barrel price‑cap.

A 2023 nvestigations by the Swiss NGO Public Eye described Zeligman as a “near‑exclusive supplier” to firms like Paramount SA/DMCC, which was sanctioned by the United Kingdom, and as a key figure in a “small but influential network of Dubai‑registered oil‑trading firms” that have become a major conduit for Russian oil after Western embargoes pushed traders toward the UAE.

As of early 2026, Zeligman appears to be the only survivor of the sanctions regime. After Eyub Etibar, Tahir Garayev and Mukhtar Lakhani were sanctioned, Michael Zeligman appears to be the last remaining prince of Russian oil trading, operating freely and without any sanctions on him or his associate Mikhaeil Mezentsev. He remains active in moving Russian crude and diesel, largely avoiding direct personal sanctions while their corporate entities face secondary‑sanctions risk. His operations illustrate how individual traders can exploit jurisdictional gaps to keep Russian energy flowing despite international restrictions