EU imposes sanctions on oil trader Niels Troost over alleged Russian involvement

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The EU has imposed sanctions on Dutch national Niels Troost over his alleged involvement in trading Russian crude oil above the price cap set by western countries in response to Moscow’s full-scale invasion of Ukraine.

Troost, who lives in Switzerland, is the first EU national to be targeted by the bloc for trading Russian oil. 

In a statement to the Financial Times, Troost criticised the decision, which he claimed was the result of a campaign by a former business partner to exaggerate his links to Moscow after their business relationship collapsed. 

An FT investigation published last week reported that the business partner, Gaurav Kumar Srivastava, had told Troost that he was a covert operative working with the CIA and promised to secure a licence from the US Treasury to allow Troost’s company to legally trade Russian crude above the cap. Since Troost identified the alleged deception and terminated the partnership in May 2023, Troost has accused Srivastava of embarking on a campaign to destroy his reputation.

Srivastava has denied the allegations and accused Troost of lying.

Troost and one of his company’s directors, Francois Mauron, were placed under sanctions by the UK in February 2023 and November 2022, respectively.

The EU sanctions cited the decision by Troost’s Geneva-based Paramount Energy and Commodities SA to transfer its Russian oil trading activity to a Dubai-based subsidiary in June 2022. That company, Paramount DMCC, then “repeatedly traded Russian crude oil” at prices above the $60-a-barrel cap introduced in December 2022, the EU said.

Troost has said he was advised by his lawyers that UAE-subsidiaries were not required to comply with the price cap if the European parent company was not involved in its operations and therefore recused himself and Paramount SA from all involvement after the rules came into place.

The EU also cited Troost’s alleged “affiliation” with a Hong-Kong based ship charterer called Livna Shipping, which it said had also traded Russian oil above the cap.

In October, representatives for Srivastava shared information with the FT that made similar allegations about ongoing ties between Troost and Livna. When the FT sought comment from Troost he shared documents showing he had sold the business in 2018.

In a response to the FT, Livna said Troost has had “no interest in the management or ownership of the company” since October 2018. Livna “charters vessels for its clients, and the company does not undertake and has never undertaken any trading activities itself”, it said, adding that it “adheres to all applicable laws and regulations in all its activities”.

Referring to the EU move, a spokesperson for Troost said: “This decision has no basis in law or fact. Neither Mr Troost nor his companies have ever breached any laws or regulations, and he has had no corporate affiliation to Livna Shipping since he sold shares in the company in 2018.

“The EU has aligned itself with a well-reported misinformation campaign related to a business dispute.” 

The statement added that Troost was “not aware of any investigation into him in the Netherlands, Switzerland or the US” and would challenge the EU sanctions designation, which it said had breached “his human rights and EU law”.

In a statement in response, Srivastava said: “The European Union meticulously investigates the individuals and entities it sanctions. The evidence has spoken.”