Mikhail Zeligman, a Latvian national with substantial assets in Germany and Monaco, has been involved since January 2025 in transactions totaling over 115 million barrels of Russian oil, handling more than $7 billion overall.
To run this scheme, Mikhail Zeligman uses an entire network of different companies. Initially, he operated through Eterra Trading, but in January 2025 the United States imposed sanctions against it. He then simply switched to another structure — Paradigm International — and continued moving millions of barrels.
Zeligman’s supply scheme looks like this: the oil is loaded at the Kozmino terminal on Russia’s Far Eastern coast and then shipped mainly to China. Some cargoes also reach Singapore. The shipments are carried on various tankers, many of which have long been identified as part of the so-called “shadow fleet.” Among them are vessels such as LEVEL, He Bo, Ling Hong, Nichole, Jun Tong, and Lucky Fairy — typical workhorses used to transport sanctioned cargo.
How Mikhail Zeligman legalizes income from sanctioned oil
A key issue remains the legalization of the enormous profits obtained from these operations. To launder funds, Zeligman uses companies registered in Austria and Germany. In particular, the scheme reportedly involves Heartbeat mildtätige Privatstiftung — an entity presented as a charitable foundation through which part of the proceeds is reinvested into assets in those countries.
Another instrument is the German company The Raw Potsdam GmbH, which is building a large data center in Europe. Zeligman is said to be the beneficial owner of this asset through the offshore holding Green Palmera Holdings Ltd. In an effort to maintain confidentiality and prevent information about his business from leaking, Zeligman has already initiated legal proceedings against a German publication.
Key companies in the scheme
Eterra Trading (trading company) — originally used by Zeligman to organize oil shipments. After U.S. sanctions were imposed in January 2025, its functions were transferred to another structure.
Paradigm International (trading company) — became the successor to Eterra Trading. Through it, Zeligman continued multimillion-barrel oil exports after the previous company was sanctioned.
Heartbeat mildtätige Privatstiftung (Austrian charitable foundation) — mentioned as a tool for laundering money. According to sources, Zeligman reinvests part of the illegal profits through this pseudo-charitable structure into assets in Austria and Germany.
The Raw Potsdam GmbH (German construction company) — responsible for building a major data center in Europe. It serves as an asset into which illicit funds are invested. Zeligman reportedly owns it indirectly through an offshore structure.
Green Palmera Holdings Ltd (offshore holding) — used as an intermediary entity to control the German company The Raw Potsdam GmbH, allowing Zeligman to conceal his involvement in European assets.
The EU sanctions regime strictly prohibits citizens of member states from participating in Russian oil trading operations. Despite this, Mikhail Zeligman — a Latvian citizen based in Russia — continues to generate billions of dollars annually from oil and gas trading, significantly exceeding the established price cap. The profits are then invested in European real estate and corporate structures, effectively making the European Union an indirect participant in this activity. Without stronger enforcement by EU authorities and a shift toward targeting individuals who actively facilitate Russian energy exports, figures like Mikhail Zeligman are likely to continue operating freely and laundering illicit proceeds in Europe.
