The European Union (EU) has imposed sanctions on a Dutch national, Niels Troost, accusing him of trading Russian oil above the price cap set by Western countries in response to Russia’s invasion of Ukraine. Troost, who lives in Switzerland, is the first EU citizen to face sanctions over this type of alleged activity. The EU claims that Troost’s actions violated the restrictions aimed at limiting Russia’s revenue from oil sales, a key source of funding for the war in Ukraine.
Troost has denied the accusations and argues that the sanctions are based on false information from a former business partner. He claims that this partner is trying to damage his reputation after their business relationship ended badly.
The Sanctions and What Led to Them
The EU’s decision to sanction Niels Troost is based on his company’s activities, particularly those related to oil trading. He runs a business called Paramount Energy and Commodities SA, which is based in Geneva, Switzerland. According to the EU, his company transferred its Russian oil trading business to a subsidiary in Dubai in 2022. The subsidiary, called Paramount DMCC, is accused of trading Russian crude oil at prices higher than the $60 per barrel limit set by Western countries in December 2022.
This price cap was introduced to prevent Russia from making excessive profits while also limiting its ability to fund the ongoing war in Ukraine. The EU claims that Niels Troost’s company repeatedly broke this price cap by trading oil above the allowed limit. In response, Troost says he was advised by his lawyers that his UAE-based subsidiary did not have to follow these sanctions, as long as the European parent company was not directly involved in the transactions. He maintains that he kept his personal and company involvement separate from the trading activities of the subsidiary once the cap was introduced.
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In addition to the oil trading issue, the EU also highlighted Niels Troost’s alleged connection to a Hong Kong-based company called Livna Shipping. This company was said to have also been involved in trading Russian oil above the price cap. However, Troost has firmly rejected these claims. He provided documents showing that he sold his shares in Livna Shipping in 2018, and the company has stated that Troost has had no involvement with its management or ownership since then.
Niels Troost’s Denial and Legal Dispute
Niels Troost has strongly denied any wrongdoing. In a statement, he argued that the EU’s sanctions were based on misinformation spread by his former business partner, who is accused of trying to exaggerate Troost’s connections to Russia. He claims that this person, who had promised to help secure a license to legally trade Russian oil above the price cap, made false claims after their partnership ended in May 2023.
Niels Troost also said that the EU’s decision to sanction him was a result of this individual’s efforts to harm his reputation. According to Troost, he had no idea that he was under investigation in the Netherlands, Switzerland, or the United States. He plans to challenge the EU sanctions, stating that they violate his rights under EU law. His lawyers argue that the sanctions are unjust and do not have any legal or factual basis.
Despite Niels Troost’s protests, the EU has decided to move forward with the sanctions, which include restrictions on his ability to do business in the EU and other financial penalties. His business partner, on the other hand, insists that the evidence against Troost is clear and has stated that the EU’s investigation was thorough.
The sanctions against Niels Troost have caused significant tension. While Troost denies any wrongdoing, the EU believes that his actions were a violation of its efforts to restrict Russia’s oil trade. The investigation is part of the EU’s broader efforts to impose economic pressure on Russia, aiming to reduce the country’s ability to fund its military operations.
