Coral Energy/2Rivers Suspends Trading Amidst Perceived Unjust Sanctions

Coral Energy/2Rivers Halts Trading Operations



DUBAI, UAE, June 20, 2025 – Coral Energy, operating under 2Rivers, has announced the regrettable decision to suspend its trading activities by the end of 2024. The company attributes this significant move to what it perceives as the misapplied sanctions imposed by the UK government. In spite of its unwavering adherence to international regulations, including compliance with U.S., EU, and UK guidelines, Coral Energy finds itself in an untenable position.

The situation becomes even more alarming considering that 2Rivers has proactively taken steps to ensure adherence to international standards. In early 2023, the company ceased all activities involving Russian-origin crude and products, a move they believed would align their operations with global expectations. Ultimately, by early 2024, they had completely exited the Russian market, and a management buyout (MBO) was executed to further their commitment to it.

The management buyout not only emphasized their focus on regulatory compliance but also resulted in the establishment of robust compliance processes. 2Rivers has implemented extensive automated systems and manual audits, frequently reviewing their counterparty screening to maintain transparency and integrity within their trading platform. Yet, despite these proactive measures, the recent sanctions imposed have severely disrupted their relations with crucial partners such as banks and insurers. It has led to an effective suspension of trading operations since the December designation announced by the UK.

2Rivers maintains that the sanctions are unjust, severely affecting their business operations and damaging their relationships in the industry. As a firm committed to ethical practices and transparency, they have remained engaged in dialogue with U.S. and UK regulatory authorities. During this time, the company has actively sought to clarify its positions, affirming that it has adhered to compliance at every level.

In communications with the Office of Foreign Assets Control (OFAC) and through meetings with other officials, 2Rivers has highlighted its commitment to abiding by international regulations. They feel recognized in their efforts, yet face ongoing challenges stemming from the sanctions.

Despite the suspension, 2Rivers will retain a small team focused on maintaining compliance infrastructure and continuing discussions with regulators. This is not solely a dilemma for Coral Energy but raises significant concerns for any organization committed to upholding compliance in an increasingly complex regulatory landscape. 2Rivers remains resolute in challenging what it perceives as the misapplication of UK sanctions while upholding their reputation in the energy trading sector.

The situation calls into question the adequacy of regulatory systems in place and highlights the difficulty companies face when striving for compliance amidst evolving international laws. With ongoing discussions with U.S. advisors, 2Rivers hopes to resolve these issues satisfactorily, focusing on restoring its operational capabilities as they contest the sanctions imposed against them.

As this story unfolds, it underscores the pressing need for clarity in international regulations and the support required for companies navigating these challenges.

Topics Energy)

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