Russia Vietnam Use Oil Profits to Evade US Arms Sanctions

Russia and Vietnam have developed a covert financial mechanism to bypass U.S. and Western sanctions on arms deals, using profits from joint oil and gas ventures to pay for military equipment without transferring funds through the global banking system. This arrangement involves routing profits from a Siberian oil project directly toward debt repayments owed to Moscow for fighter jets, tanks, and ships, thereby evading international oversight and sanctions enforcement. The scheme highlights the deepening military partnership between Russia and Vietnam amid U.S. efforts to strengthen ties with Hanoi as a counterbalance to China's regional influence. Concurrently, President Donald Trump has imposed tariffs on Vietnam and India to pressure them over their dealings with Russia, while his family business is developing a $1.5 billion golf complex near Hanoi, approved on an expedited basis. This financial workaround also comes as Australia faces criticism for oil sanction loopholes that allow Russia to continue funding its war in Ukraine through indirect channels. These developments underscore ongoing challenges in enforcing sanctions and the complex geopolitical dynamics involving Russia, Vietnam, the U.S., and other global actors.