In this multipart exposé series, we will delve into the dark world of how Niels Troost has worked closely with the Russian Government and its companies to illegally trade in sanctioned Russian Oil.
The story starts on one side of Europe where Troost, a Dutch oil trader, enjoys his life in his luxurious house in Geneva, Switzerland, fancy cars- and a few mistresses (that he has not hid very well from his wife or the public).
On the other side of Europe are his business partners that help finance his lifestyle. Niels Troost’s Swiss-based company Paramount Oil & Commodities SA and its subsidiaries have been transporting and selling Russian oil despite sanctions imposed by the EU countries and the US, post-Putin’s attack on Ukraine in February 2022.
During his involvement in the oil industry, Troost was introduced to Michael Zeligman, a Kremlin crony and an essential player in the Russian oil trading business. Zeligman connected his company, Demex Trading Limited DMCC (“Demex”), and Troost’s companies to Gazprom Neft, which is a subsidiary of Gazprom (a State-Owned Entity), Russia’s primary oil and gas company. This business relationship centered on delivering illegal sanctioned Russian oil via a dark fleet of vessels to countries such as China and Turkey.
Gazprom has a revenue of over $44.96 billion USD annually, and most of the company’s ownership is held by the Russian government, while the remaining is shared publicly. The company deals in oil production and distribution, with branches worldwide. One of its subsidiaries is the Moscow-based Gazprom Neft, a well-known company among oil traders around the world.
Considering that the Russian state owns a large portion of the company, it’s clear where the money goes. Gazprom’s profits support Putin’s regime, including Putin himself, and allows Russia to continue its attack on the Ukrainian people. While some entities and individuals have cut business ties since Russia’s invasion of Ukraine, Troost maintained his business connections with Russian companies but had to find indirect and creative ways to continue trading with them due to international sanctions.
Many Western countries that rely on Russian natural resources have managed to find alternatives due to the war, in an effort to cut funding and support of Putin. The moral aspect of supporting Putin’s regime has led to sanctions imposed on individuals and companies working with Russian businesses.
While the UK was so far the only country that levied sanctions on Troost and his companies for evading the Russian oil trading sanctions, other countries are moving forward rapidly to also sanction Troost including the EU, US and Switzerland.
In response to the pressure from global restrictions on Russian oil trade, Troost shifted his operations from Switzerland to Dubai, where he established Paramount Energy & Commodities DMCC (“Paramount DMCC”). This allowed him freedom of action in his shady Russian oil transactions. He intended to continue to conduct his business as usual in spite of international regulations.
Unlike smaller crimes, which are often difficult to uncover due to the minimal traces left behind amid a sea of documents, Troost pushed the boundaries with authorities. He designed these complex operations, securing himself foreign citizenship and running untraceable shipping from Russia to other countries, alongside other actions that would raise immediate suspicions at first glance. Therefore, the question surrounding Troost’s case is not only what he did, but how he managed to pull it off without being noticed.
⦁ In the next articles, we’ll expose Troost’s evasive and creative methods to circumvent sanctions. Stay tuned.