Headlines
Russia's Lukoil sets up a new oil trading arm in Dubai, sources say
Published by Global Banking & Finance Review®
Posted on August 6, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on August 6, 2025
2 min readLast updated: January 22, 2026
Lukoil creates a new oil trading arm in Dubai, Alghaf Marine DMCC, as Western sanctions on Russian energy exports intensify.
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)
The new entity is called Alghaf Marine DMCC, incorporated in Dubai on December 31, 2024, and was first registered to handle shipping.
Lukoil is shifting its trading business to Dubai following the addition of Litasco Middle East to Britain's list of Russia-related sanctions.
Alghaf Marine DMCC received its oil trading licence on May 15, allowing it to trade in refined oil products, lubricants, grease, and crude oil.
The European Union has not sanctioned Litasco Middle East but has listed its Dubai-based shipping arm, Eig, in its sanctions.
Lukoil declined to comment on the establishment of the new trading arm, and Litasco Middle East DMCC did not respond to requests for comment.
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