The company announced on Wednesday that the Dubai-based oil trading firm 2Rivers (formerly Coral Energy) has begun the formal dissolution process following the sanctions imposed by Britain and the European Union.

The company said it took the decision with great regret, and that the sanctions had put immense pressure on them.

Western powers have imposed sanction on Russia's traders and fleet, accusing them of evading sanctions by trading Russian oil at prices above the Group of Seven nations price cap.

2Rivers/Coral denied any allegations that they had violated sanctions directly or indirectly. They said that they were actively seeking to remove the sanctions and challenging them.

Britain sanctioned 2Rivers, first in December. Then in May it doubled down and froze the assets of several directors.

Last month, the EU added 2Rivers Singapore and Dubai entities as part of its 18th package of sanctions.

The 2Rivers Group conceals the true origin of oil to enable shipments and exports of Russian oil. This is primarily from Rosneft. The EU stated that the 2Rivers Group, in particular, controls a significant proportion of vessels in Russia's'shadow fleet.'

Coral Energy changed its name to 2Rivers after a management takeover in mid-2024. It also stated that it had severed all ties with the previous owner, stopped any new Russian oil deals by the end of 2022, and completely exited the marketplace by the beginning of 2024. (Reporting and editing by Mark Potter.)

(source: Reuters)