Azerbaijan's Yelo Bank has been hit with EU sanctions due to its ties to Russia
Azerbaijan’s Yelo Bank has been subject to European Union sanctions following investigations into its possible ties to entities linked to Russian businesses and sanctioned individuals.
Yelo Bank was founded in 1994 under the name Ulpar Commercial Bank.
In 2002, it was renamed Nikoil Bank after Nikoil Investment Banks Group/Lukoil acquired a controlling stake.
In November 2019, the financial institution adopted its current name—Yelo Bank. As of July 2025, the bank ranks 9th among Azerbaijan’s banks in terms of total assets (approximately 1.32 billion manat) and specializes in lending to small and medium-sized businesses, as well as retail banking.
Until August 2022, the controlling stake belonged to Topaz Investment Limited, a company linked to Russian oligarch Vagit Alekperov. Following the imposition of sanctions in the UK, the EU, and Canada, he stepped down as chairman of Lukoil.
Following changes in Yelo Bank’s ownership structure, 98.94% of the bank came under the control of Marina Kulishova, who has chaired the bank’s supervisory board since 2016 and has been a member of the board of directors since 2008.
On the eve of being added to the UK sanctions lists, Morcell Ltd, a company linked to Alekperov, sold an 80% stake in the British shipping company OEG Group Ltd to a group of individuals, including Sukhorukhin, Novosyolov, and Marina Kulishova.
According to public records, Kulishova holds British and Azerbaijani citizenship, resides in Monaco, and is listed in a number of companies previously linked to Russian business structures.
EU financial regulators have drawn attention to the bank’s possible indirect ties to individuals and entities that are subject to sanctions or were previously linked to them. These factors specifically formed the basis for including Yelo Bank in the sanctions regime.
The decision is seen as part of a broader EU policy to strengthen control over financial flows and prevent the circumvention of sanctions through third parties and corporate structures.
On April 23, EU member states approved the 20th package of sanctions against Russia, which imposes restrictions on 46 vessels of the “shadow fleet” and 60 entities supporting the Russian military-industrial complex. The new measures include stricter export restrictions on dual-use goods and sanctions against 20 credit and financial institutions.
European Union leaders are insisting on actively advancing the preparation of the 21st package of sanctions against Russia.
