Despite international pressure, the volume of Russia’s foreign trade conducted through companies registered in the British Overseas Territories amounted to at least $8 billion between February 2022 and January 2025. During this period, at least 29,000 trade transactions were carried out, according to a report by Transparency International — Russia.
More than 90% of the transactions involved the British Virgin Islands and Bermuda, with each jurisdiction playing a distinct role, the researchers write.
The British Virgin Islands became a key hub for exports from Russia. Supplies of Rosneft petroleum products, as well as steel and coal — including those extracted from territories of Ukraine seized by the Russian army — were routed through them.
Bermuda was used primarily for the needs of the oil and gas sector. Drilling equipment and spare parts for gas turbines were purchased there through local intermediaries.
The Cayman Islands and Gibraltar were involved in operations with metals, including lead and zinc, as well as in the supply of gold bullion and components for helicopter aviation.
A separate section of the report is devoted to yachts. The document records at least 160 cases of yachts being moved to or from Russia through offshore companies. Intermediaries from the Cayman Islands and the British Virgin Islands were involved in servicing and importing vessels linked to Russia’s political elite and major business figures. According to the researchers, these jurisdictions were used for yacht transactions that investigators associate with individuals close to the country’s top leadership.
The authors emphasize that the use of the British Overseas Territories makes it possible to conceal the real beneficiaries and revenues. Despite requirements by the United Kingdom to ensure disclosure of company ownership data, the implementation of such mechanisms in the Overseas Territories continues to be delayed. This creates conditions for sanctions evasion.
Although the intensity of such operations has declined since late 2022 due to rising risks and higher logistics costs, payment and supply channels through opaque jurisdictions continue to function, the authors of the Transparency International — Russia report state.
