UK Sanctions Azerbaijan State-Owned Tanker ‘Zangazur’ for Shipping Russian Oil

On May 9, 2025,  the UK sanctioned a state-owned Azerbaijani tanker as part of its efforts to stop Russia’s oil trading shadow fleet. On the same day, the United Kingdom sanctioned five Azerbaijani citizens reportedly related to an oil trading organization located in Singapore and the United Arab Emirates that works to promote Russia’s energy industry.

A UK ruling with respect to this subject is a part of sanctions and gives Azerbaijan a strong message on the pretext of its expanding energy agreements with the EU.

The Foreign Policy Research Institute expert Maximilian Hess highlighted that this move serves as a clear diplomatic warning to Azerbaijan.

It targets a “shadow fleet operation, masterminded by Putin’s cronies,” according to the office of U.K. Prime Minister Starmer. The oil shipments are “bankrolling the Kremlin’s illegal war in Ukraine,” added Starmer.

In addition to the ships, the UK sanctioned two companies: BX Energy and Nord Axis LTD.

Corporate records obtained by OCCRP reveal that these enterprises are registered in Hong Kong and owned by different Dubai-based entities.

While the UK did not indicate who owned any of the sanctioned ships, research by the Organising Crime and Corruption Reporting Project (OCCRP) determined that the ship Zangazur was owned by the Azerbaijan Caspian Shipping Company, based on the notice on the company’s website.

According to financial statements analyzed by the OCCRP, the Azerbaijani government holds 100% of the company’s shares.

The shipping data shows that the state-owned Zangazur has made numerous trips to Russia during the past year, showing multiple sanctions evasions. It visited Primorsk eleven times, which is a major Russian export port with an oil terminal a few hours west of Saint Petersburg.

This is not the first time that Azerbaijan’s link to Russian oil export has drawn criticism, but it has a history as well. According to data, the European Union imported 40% more Russian oil via Azerbaijan’s tankers in the first quarter of 2024.

“The vast majority of STAR products imported by the EU this year have likely been made from Russian oil,” say sources.

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The U.K. sanctions are especially noteworthy due to the strategic importance of Azerbaijan to Europe’s energy diversification initiatives.

European Commission Vice President Kaja Kallas visited Baku in April to discuss trade and energy security, and said: “You have helped the European Union diversify its energy supplies and strengthen our own energy security at a time when the world is facing unprecedented challenges.”

This most recent action demonstrates the mounting strain on Azerbaijan to maintain international sanctions against Russia while balancing its energy partnerships.

As per the UK press release, the UK’s sanctions on Azerbaijan’s tanker have highlighted the growing pressure to enforce sanctions amid complex energy ties. Azerbaijan is currently facing critical times in balancing its EU partnerships with other global compliance demands.