Sanctioned oil trader 2Rivers starts dissolution

Dubai-based oil trader 2Rivers, formerly known as Coral Energy, has started the formal process of dissolution following sanctions by Britain and the European Union, the company said on Wednesday.

The company, which ceased trading activities in June, said the decision was taken with deep regret and under extraordinary pressure following the sanctions.

Western powers have imposed sanctions on Russia's fleet and network of traders, accusing them of circumventing sanctions and trading Russian oil above the Group of Seven nations' price cap.

2Rivers/Coral said it rejected any assertion that it violated sanctions measures, directly or indirectly, and that it was actively pursuing all avenues to challenge and seek the removal of the measures.

Britain sanctioned 2Rivers in December, before doubling down with asset freezes on several directors of the firm in May.

The EU added 2Rivers' Singapore and Dubai entities to its 18th sanctions package last month.

"The 2Rivers Group enables shipments and export of Russian oil, notably from Rosneft, by concealing the actual origin of the oil. In particular, the 2Rivers Group controls a large proportion of the vessels in Russia’s so-called 'shadow fleet'," the EU said.

Coral Energy rebranded as 2Rivers in mid-2024 after a management buyout. It has also said it severed ties with its previous ownership, had stopped all new Russian oil deals at the end of 2022 and fully exited the market by early 2024.

(Reporting by Robert Harvey Editing by Mark Potter)