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Azerbaijani Petrol Tycoon Detained for Contaminating Oil Amid Russian Ties Investigation

Azerbaijani authorities have arrested prominent petrol magnate Adnan Ahmadzada on charges related to contaminating the country’s prized Azeri Light crude oil with inferior petroleum products from different sources, while investigations also probe his alleged business connections with Russia and potential involvement in sanctions evasion schemes. The former SOCAR official’s detention marks a significant development in Azerbaijan’s energy sector, raising questions about corruption and foreign influence in the nation’s vital oil industry.

According to OC Media, Ahmadzada’s lawyer, Shaig Mirzayev, has refused to reveal the specific charges against his client, citing confidentiality requirements during the investigation process. The lawyer confirmed Ahmadzada remains in good health and has not been subjected to physical violence while in custody.

Baku’s Sabail District Court ordered Ahmadzada to four months of pre-trial detention on Saturday, with the case being handled by Azerbaijan’s State Security Service (SSS). While authorities have maintained official silence on the exact nature of the charges, pro-government media outlets have extensively reported that Ahmadzada faces accusations of undermining economic security and embezzlement on an especially large scale.

The contamination scandal emerged in July when Austrian energy group OMV discovered organic chloride contamination in Azerbaijani petroleum products. This discovery triggered immediate market repercussions, with Azeri Light oil prices plummeting from $75 to $68.31 per barrel—a decrease of $6.69—and disrupting shipments from Turkey’s BTC Ceyhan terminal. Pro-government outlet Qafqazinfo estimated that Azerbaijan’s export revenues dropped by $2.01 billion in July alone due to the contamination crisis.

Beyond the contamination charges, investigators are scrutinizing Ahmadzada’s extensive business network and alleged connections to Russian interests. Media reports suggest he played a crucial role in transporting Russian petroleum to the European Union and potentially aided Russia and Iran in circumventing Western sanctions. His business empire reportedly extends through multiple entities, including ABDA Invest Holding and Alkagesta, a Malta-registered company that has become the country’s largest marine fuel supplier.

The investigation reveals Ahmadzada’s deep entrenchment in Azerbaijan’s petroleum industry despite formally leaving SOCAR Trading, a Swiss-registered subsidiary where he was co-founder alongside Anar Alizada, cousin of former SOCAR head Rovnaq Abdullayev. His brother, Khayal Ahmadzada, currently serves as Vice President of Business Development at SOCAR Trading, maintaining the family’s influence within the state oil company’s operations.

Alkagesta, founded by Ahmadzada’s close relative Kamran Aghayev in 2018, is reportedly under investigation by EU and UK authorities for trading Russian oil in Europe. Aghayev also directs Caspian Oil and Gas, which maintains offices in Azerbaijan, the UAE, and Moscow, listing Russia’s Tatneft and petrochemical giant Sibur as strategic partners.

The arrest comes amid heightened scrutiny of Azerbaijan’s role in potential sanctions circumvention. In September, the EU quietly extended sanctions to include the Azerbaijani state-owned STAR Refinery in Turkey, banning imports of refined products made from Russian crude processed in third countries. EU foreign affairs spokesperson Anitta Hipper confirmed that STAR, jointly owned by the Azerbaijani government and SOCAR, falls under the 18th sanctions package adopted in July 2025.