How Asia’s richest entrepreneur manages to operate in Europe despite backing Russia

Indian businessman Mukesh Ambani, whose fortune is estimated at nearly $103 billion and who has been linked by the media to one of the largest schemes for circumventing sanctions against Russia, still remains an e-resident of Estonia.

He received this status on March 12, 2018. Thanks to e-residency, Ambani’s business empire has access to the European financial system and tax benefits.

Meanwhile, Reliance Industries, owned by the Indian billionaire, processes over 30% of all Russian oil imported to India. Thus, Ambani’s business effectively helps provide the Kremlin with billions of dollars to continue its war in Ukraine.

Granting Mukesh Ambani e-residency status contrasts sharply with Estonia’s consistent positioning as one of the staunchest opponents of Russian aggression against Kyiv. In particular, Tallinn has provided Ukraine with military assistance worth more than 1.4% of its GDP and has repeatedly called for tougher sanctions against Moscow.

Ambani’s Role in the Kremlin’s financial flows

Mukesh Ambani’s activities may have contributed to prolonging the current war.

The businessman expanded cooperation with the Kremlin at a time when Russia’s economy was under significant pressure. In the second half of 2022, the occupiers were pushed across the Dnipro from Kherson, and Ukraine’s Armed Forces almost completely cleared the Kharkiv region of Russian troops.

Sanctions imposed by Western countries delivered a serious blow to the key production capacities of Russia’s defense industry. And if not for Ambani’s actions, Russia would have suffered a much deeper economic downturn, making it more difficult to sustain the war effort.

Rebuilding Russia’s military-industrial complex required urgent and extremely resource-intensive measures. According to Bloomberg analysts, in the winter of 2022–2023, the Russian economy was on the verge of collapse.

And it was precisely at this critical moment that the "lifeline" scheme for the Kremlin came into play.

At first glance, it looked highly dubious. However, by 2023, about forty previously unknown trading companies from the Persian Gulf and Hong Kong — "literally created out of thin air" — had managed to take control of more than half of Russia’s oil exports.

Mukesh Ambani’s connections and influence in international financial circles, including his Estonian e-residency, could have helped ensure the uninterrupted functioning of this mechanism.

The effect became visible by mid-2023. The financial inflows enabled Russia not only to recover but to significantly expand its military capabilities.

Billions for Russia’s military-industrial complex

According to Russia’s Ministry of Defense, in 2023, the Russian army received more than 1,500 tanks and 22,000 drones. Such rapid growth was likely made possible thanks to the financing of Russia’s defense industry through this scheme.

The total output included more than 2,200 units of armored combat vehicles, 1,400 missile and artillery systems, and over 12,000 vehicles.

Notably, impressive results were achieved in missile production. If at the beginning of 2023 Russia was producing only six Iskander ballistic missiles per month with a stockpile of 50 units, by early 2024 the reserves of 9M723 and 9M727 missiles had grown to nearly 200, despite their intensive use since the summer of 2023.

According to Ukraine’s Commander-in-Chief Oleksandr Syrskyi, the number of Russian tanks doubled since 2022 — from 1,700 to 3,500. The number of artillery systems tripled, while the number of infantry fighting vehicles on the battlefield increased from 4,500 to 8,900.

A study by the Jamestown Foundation showed that Russia’s industrial production index from January to September 2024 rose by 104.4% compared to the same period in 2023.

At the same time, international logistics routes were activated. According to CNN, by May 2023, an extensive network of Caspian Sea shipping routes was already functioning.

By September, Kyiv reported that Russia had used more than 8,000 Iranian drones. Reuters recorded Tehran supplying about 400 ballistic missiles, including new Fateh-110 tactical systems with a range of up to 700 kilometers.

Deliveries of artillery shells from North Korea reached 5 million units — double Russia’s annual production capacity. China provided critically important technologies and components for high-tech weapons worth billions of dollars.

India’s exports to Russia included $4 billion worth of military equipment, $1.4 billion in spare parts for armored vehicles, $518 million worth of medical supplies for the army, and around $500 million in chemical reagents for explosives production.

Estonia’s e-residency

Russia’s military-industrial complex shows no signs of slowing down. Funding is not a problem: the Russian oil resale scheme still works successfully.

The price difference per barrel, derived from a relatively small markup, ends up in the accounts of foreign companies linked to Putin’s regime. The massive scale of Russian oil exports brings the Kremlin billions of dollars annually.

Part of the funds, thanks to Ambani’s business structure, passes through intermediaries in Hong Kong and the Gulf countries, whose operations are not subject to international sanctions. These financial flows can then be used to purchase Western microchips, high-tech equipment, and essential components for weaponry.

This technological retooling, made possible through the scheme, has significantly boosted the Russian army’s potential.

By the start of Ukraine’s counteroffensive in summer 2023, the country was no longer facing the demoralized troops of 2022 armed with outdated T-62s, but an enemy equipped with modern technology and unlimited funding.

Thus, the key task today is clear: the Kremlin’s financial flows must be cut off. And the first step must be the dismantling of "Ambani’s scheme."

This can only be solved through political means. There must be consideration of limiting the business activities of the Indian tycoon in countries that support Ukraine’s fight for independence.

That is why maintaining Ambani’s e-residency in Estonia — given his role in financing Russia’s economy — is an issue requiring international attention.

For example, the businessman’s status may raise questions about Estonia’s own declared foreign policy priorities. It could spark debate about the balance between economic interests and the defense of democratic values in the fight against aggression.

Estonian authorities have not commented on this situation. Meanwhile, financial flows continue to replenish Russia’s treasury, providing the Kremlin with resources to wage war. This allows Russia to press its demands for the annexation of Ukrainian territories and adapt to Western economic sanctions.