EU Imposes Sanctions on Azerbaijani Bank, Removes Sanctions on Vessels
The European Union has implemented a new sanctions package against Azerbaijani Yelo Bank, citing its alleged support for Russia’s invasion of Ukraine. The sanctions, set to take effect on May 14th, target Yelo Bank for assisting Russia by potentially obstructing sanctions compliance and utilizing the Russian Financial Messaging System (FMS). Yelo Bank, formerly Nikoil Bank, has operated in Azerbaijan since the early 2000s and is owned by entities including NIKOIL Investment Banks Group and LUKOIL Oil Company.
Alongside the bank sanctions, the EU has also lifted sanctions on five Azerbaijani-owned vessels. These vessels, previously sanctioned in July 2020 for transporting Russian energy products, were part of what the EU termed a “shadow fleet.” The sanctions were initially imposed on vessels operated by Azerbaijan Caspian Shipping Company (ASCO) and state-run oil company SOCAR. Following the announcement, ASCO released a statement expressing gratitude to the Presidential Administration, the Foreign Ministry, and other Azerbaijani entities for their efforts in securing the removal of sanctions.
The EU justified the action by stating the vessel owners demonstrated compliance with sanctions regulations. Despite the EU’s decision, these Azerbaijani vessels remain subject to sanctions by other nations, including the UK and Canada, which have previously sanctioned over 100 vessels believed to be part of the Russian shadow fleet. Yelo Bank stated it continues to adhere to international sanctions regimes and is working with authorities to resolve the situation, expressing confidence in a swift resolution.
The move highlights ongoing international scrutiny regarding Azerbaijan’s economic ties with Russia.
Topics: #sanctions #azerbaijani #vessels
