Near-exclusive supplier to Paramount SA and Paramount DMCC is OFAC-sanctioned Demex Trading Limited DMCC
A longtime supplier to Paramount SA was Concept Oil Services Ltd., a Hong Kong-domiciled firm founded by Monaco resident Michael Zeligman.[1] According to investigative reporting by PublicEye, there is a strong likelihood that Demex is a successor to Concept Oil Services Ltd and is likewise controlled by former Transneft officials. Ex-Transneft manager Mikhail Mezhenstev has worked for both Demex and Concept Oil underlining the proximity of the two companies:[2]
“For several years now, Concept Oil Services Limited has been suspected of being controlled by former Transneft officials. According to an investigation conducted by Important Stories, an independent Russian media outlet, the trader was allegedly sponsored by the former son-in-law of Nikolai Tokarev – the current head of Transneft and close to Vladimir Putin – and by Mikhail Arustamov, the former first vice-president of Transneft. Interestingly, Mr. Arustamov, a Swiss resident, bought a property in Geneva this summer worth CHF 3.8 million, as revealed by Bilan magazine.”
In addition, it is suspected that in early 2023, Rosneft head Igor Sechin transferred Rosneft sales away from Murtaza Lakhani, the founder of Mercantile & Maritime Group, after Lakhani ceased trading Russian oil.[3] The reporting suggests the replacement was Demex, which greatly increased its export of Russian oil in 2023 (30-40 shipment became 700 shipments annually), [4] and it is suspected that Paramount DMCC participated in that activity.
Publicly available research indicates that Demex purchased approximately 130 million barrels of Russian crude oil above the price cap in the first three months of 2023, making Demex far and away the leading purchaser of Russian crude oil over the price cap,[5] what portion of that was in partnership with Paramount DMCC remains to be clarified.
Until at least February 2023, according to the ledgers, Paramount DMCC traded oil, and potentially diesel, supplied by Demex and its predecessor Concept Oil between 9 to 10 times per month.[6] Paramount DMCC replaced Paramount SA as Troost’s primary vehicle to transport Demex’s oil and gas supplies out of Russia, a conclusion supported by Paramount DMCC’s October 2023 annual documents indicating that the company trades Russian energy products, such as ESPO, URALS, and Diesel.[7]
The Paramount DMCC ledger reflects transactions totaling AED 14,952,498,514 between Demex and Paramount DMCC in 2022, and this activity was increasing through February 28, 2023 (the last date of the ledger).
Between July, 2022, and February 2023, Paramount DMCC and Demex regularly transacted in AED, USD, and EUR as payment for Paramount DMCC’s purchase of Demex supply.
For instance, a transaction dated December 13, 2022, one of the few ledger entries that denotes a currency after the price caps went into force, indicates that Demex made a partial payment to Paramount DMCC for $4,774,250.00 USD. On the same day, Demex made a final payment using the same reference code for AED$ 236,301,661.59, an amount equivalent to $64,334,781.48 USD. It is unclear if this transaction was subject to the price cap or if U.S. persons were used, though additional scrutiny is warranted.
Open source reports reflect that Demex was the largest purchaser of Russian oil above the price cap in the first quarter of 2023, a time period that conveniently matches large transfers from Demex to Paramount DMCC.[8]
[1] According to PublicEye, Zeligman is the "official" owner of Concept Oil and a "Seychellois citizen" is the paper owner of Demex.
[2] Russian Oil Trade: Dubai Pulls Out All The Stops To Edge Out Switzerland, PublicEye, Nov. 21, 2023, https://www.publiceye.ch/en/topics/commodities-trading/russian-oil-trade-dubai-pulls-out-all-the-stops-to-edge-out-switzerland.
[3] The Trading Tycoon Steering Russia's Global Oil Business, Bloomberg UK, Oct. 14, 2023, https://www.bloomberg.com/news/articles/2023-10-14/the-trading-tycoon-steering-russia-s-global-oil-business
[4] Treasury Intensifies Sanctions Against Russia by Targeting Russia's Oil Production and Exports, U.S. Dep’t Treasury, Jan. 10, 2025, https://home.treasury.gov/news/press-releases/jy2777.
[5] Russian Oil Trade: Dubai Pulls Out All the Stops to Edge Out Switzerland, Public Eye, Nov. 21, 2023, https://www.publiceye.ch/en/topics/commodities-trading/russian-oil-trade-dubai-pulls-out-all-the-stops-to-edge-out-switzerland and The Secrets Of Demex, The Trader Selling Russian Oil In West Africa, Africa Intelligence, Sept. 2, 2024, https://www.africaintelligence.com/west-africa/2024/09/02/the-secrets-of-demex-the-trader-selling-russian-oil-in-west-africa,110281522-ge0.
[6] Based on the ledgers as well as Bills of Lading, customs records, and shipping data that show Paramount Energy & Commodities SA’s relationship with Demex. This includes signed Proformas with Troost’s name and signature on them.
[7] Russian Oil Trade In Switzerland: A Fake Farewell?, PublicEye, Mar. 20, 2023, https://www.publiceye.ch/en/topics/ukraine/commodity-trading-with-russia/russian-oil-trade-in-switzerland-a-fake-farewell.
[8] Russian Oil Exports Under International Sanctions, Int’l Work. Gr. Russ. Sanctions & KSE Institute, Apr. 26, 2023, https://fsi9-prod.s3.us-west-1.amazonaws.com/s3fs-public/2023-05/sanctions_russian_oil_exports_-_23q1_update_impact.pdf