As a response to Russian military actions in Ukraine, a lot of countries regularly update the lists of sanctioned entities and individuals to put strain on Russia’s economy. However, sanctioned companies and their owners often invent new methods to circumvent the restrictions. The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN), which collects and analyzes information about financial transactions to combat money laundering and other financial crimes, identifies several key indicators of sanctions evasion. The most common scheme includes the use of front companies and third parties to conceal the true owners subjected to sanctions. One of the most prominent examples of this kind of sanction evasion is Niels Troost and his wife, Jacqueline Troost Omvlee.
In Geneva, one of the most popular cities among Russian oligarchs, Jacqueline Troost Omvlee emerged as a key player in the complicated world of sanctions evasion. As Russia has shifted its oil and gas exports away from Western markets, Jacqueline reportedly assists sanctioned entities in bypassing regulatory measures through her husband`s business assets and connections in the lobbyists’ circles. The role she plays in these questionable schemes raises serious concerns regarding how efficient current sanctions enforcement is and the wider impact on global oil markets.
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The global trade dynamic has been significantly affected by the implementation of Western sanctions and a price limit on Russian crude oil. While these measures intend to decrease Russia’s income from the oil trade, they opened other trade possibilities for Russia in Asia, the Middle East, and Africa. The rise in the availability of cheap Russian oil, along with Russia’s offer to cover certain transportation expenses, has drawn in profit-seeking companies looking to take advantage of these market opportunities.
Jacqueline Troost has been recognized as an essential facilitator in this complex system of evading sanctions. Her participation has played a crucial role in overseeing and rerouting Russian oil shipments to different markets. Using her knowledge of finances and contacts, Omvlee has helped maintain companies trading Russian oil, despite the sanctions imposed by Western states.
Jacqueline’s involvement in this sordid part of the industry became especially noticeable after sanctions were imposed on her husband, Niels Troost, and his Swiss-based company, Paramount Oil & Commodities SA. To continue his trade with Russia, Troost moved Paramount’s business activities to a Dubai-based branch, Paramount Energy & Commodities DMCC, with the help of Francois Edouard Mauron, his sanctioned associate. Jacqueline Troost plays a vital part in this plan by managing operations and bank accounts that Niels Troost can no longer access due to the Western restrictions imposed on him for ties with Russia. This is one of the oldest and most common schemes, where the sanctioned owners of a company or its shareholders fictitiously leave the company, only for new owners, often represented by their close family members or associates, to take over the entity.
“Anyone still doing business in or with Russia should be skeptical of supposed divestment schemes that involve shell companies or proxies linked to sanctioned oligarchs. Corporate sales and acquisitions can be abused for money laundering and sanctions evasion,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. However, even though Jacqueline Troost Omvlee plays a major role in enabling the trading of sanctioned Russian oil, she has not faced any sanctions personally.
As a result of the activities of such individuals as Jacqueline and Niels Troost, the Russian economy is thriving, challenging the efforts of the international community. The complexity and array of sanctions evasion methods intensify the need for governments to build sophisticated and holistic due diligence processes on sanctions screening. Countries should collaborate to address the gaps in sanctions enforcement and enhance efforts to identify and prevent sanctions evasion schemes.
