A bitter feud between Russian oil traders has spilled into courts in Dubai and Brazil, with lawsuits worth hundreds of millions of dollars and allegations of stolen trade secrets and death threats.
The dispute involves Igor Soglayev, a former Deutsche Bank executive, and traders linked to the sanctioned Coral oil network, according to an investigation published by The Wall Street Journal on Sunday.
The fallout began when a tanker carrying Russian diesel worth tens of millions of dollars failed to deliver its cargo in Brazil.
The dispute has since led to claims exceeding $500 million, a $42 million arbitration award and a Dubai court order freezing assets worth up to $704 million.
Soglayev, who previously advised Igor Sechin, the head of Russian oil giant Rosneft, partnered with traders associated with Coral in early 2024.
He established Dubai-based DIA33 to trade Russian diesel and export it to Brazil, but the partnership collapsed following the failed shipment.
Coral-linked traders accused Soglayev of failing to pay for the fuel and secured a Dubai arbitration ruling ordering him to pay approximately $42 million.
Soglayev then filed lawsuits in Dubai and Brazil, accusing his former partners of undermining his business and misusing confidential commercial information.
He is seeking more than $500 million in damages and claims to have received death threats.
In June, a Dubai judge ordered the freezing of up to $704 million in assets belonging to the defendants and associated companies.
The order remains in place while appeals continue, although questions over the court's jurisdiction have complicated proceedings. No final ruling has settled the competing allegations.
The WSJ reported that the UAE court handling the main case has not made the proceedings public.
Accusations of stolen clients
The dispute has also reached Brazil, where DIA33 accused Coral of recruiting senior employees and using its customer base, offices and infrastructure to establish a rival business.
Brazilian newspaper Folha de S.Paulo reported that a commercial court in Sao Paulo had identified indications of unfair competition.
Representatives of the defendants denied wrongdoing, arguing that the dispute stemmed from a business partnership that had never been fully formalised.
Coral has separately accused DIA33 of misappropriating a diesel shipment.
A sanctioned oil network
Coral Energy, renamed 2Rivers in 2024, has been a major player in Russian oil trading, with commercial roots in Azerbaijan and offices in Dubai and Singapore.
Western officials accuse traders associated with the network of helping Moscow maintain oil exports and finance its war in Ukraine despite sanctions.
Britain sanctioned the group in December 2024 and added five executives to its sanctions list in May 2025.
The European Union has also sanctioned associated entities, accusing them of facilitating Russian oil exports, disguising the origin of shipments and using vessels linked to Moscow's so-called shadow fleet.
The network has denied breaching sanctions and announced plans to wind down operations in August 2025, citing Western pressure.
Dubai has become an important hub for Russian oil trading since Moscow redirected exports away from Europe following its 2022 invasion of Ukraine.