Switzerland has initiated a formal investigation into Geneva-based Paramount Energy & Commodities SA, amid concerns that its operations may involve trading oil from Russia in ways that bypass sanctions. Reports from major outlets have highlighted the scrutiny currently facing the company in this regard.
According to reputable financial coverage, the State Secretariat for Economic Affairs (SECO) began examining Paramount’s business practices in April. The firm is registered in Dubai and operates as a legally independent entity from the Swiss-registered arm, a distinction that SECO is closely evaluating as part of its review.
The Dubai subsidiary is believed to engage in trading Russian ESPO crude at prices that exceed the sanctions-imposed ceiling of $60 per barrel. SECO is therefore seeking detailed information about whether Paramount Energy & Commodities DMCC has continued Russian oil transactions since December of the previous year and, if so, at what price levels those trades were executed.
Paramount Energy & Commodities SA has stated that it does not handle oil from Russia and that the Dubai division operates as a separate company. Nonetheless, the Swiss regulator has not been persuaded by that explanation and has chosen to proceed with the investigation. A continuation or expansion of the inquiry could signal to the broader commodities market how regulators monitor and respond to potential sanctions evasion in oil trading networks.
Earlier in the year, Bloomberg reported that the European Union was considering adjustments to the initial proposals within the 11th sanctions package aimed at the Russian Federation, reflecting ongoing shifts in enforcement expectations and diplomatic strategy among bloc members. This development underscores the EU’s evolving approach to limiting Russia’s access to energy markets while balancing broader economic and political considerations.
Additionally, prior disclosures indicated that the European Union would not permit the entry of tankers believed to be carrying Russian oil, an enforcement step designed to tighten control over maritime shipments and reduce circumvention pathways for sanctioned crude. The convergence of these regulatory movements and the Geneva investigation illustrates the heightened attention on transparency and traceability in cross-border oil trade amid ongoing sanctions efforts.