Archive · 19 Sep 2025
Russia and Vietnam Use Energy Profits for Arms Deals, Avoiding Sanctions
Imagine Vietnam wants to buy cool jets and tanks from Russia, but the US doesn't want them to.
To get around this, they're using money made from oil and gas businesses they run together.
Instead of sending money through banks, which could get blocked, Vietnam uses the profits to pay Russia back.
This way, the money stays inside their countries and avoids any problems with the US.
It’s like a secret way of doing business, with the US watching closely.
Russia and Vietnam are using profits from joint oil and gas projects to pay for weapons.
Vietnam purchased Russian fighter jets, tanks, and ships on credit.
Payments are made with profits from Rusvietpetro, a joint oil venture in Siberia.
This system avoids the international SWIFT banking system to evade sanctions.
The US State Department has warned Vietnam about transactions with sanctioned entities.
- Who
- Russia and Vietnam
- What
- Using oil and gas profits for arms purchases to avoid sanctions.
- When
- June 2024 memo detailed the system.
- Where
- Vietnam and Russia
- Why
- To bypass potential US and European sanctions.
- Countries Involved
- Russia, Vietnam, United States
- Deals
- Vietnam purchased Russian fighter jets, tanks, and ships.
- Payment Method
- Profits from a joint oil venture in Siberia (Rusvietpetro).
- Sanctions Avoidance
- The payment method avoids the international SWIFT banking system.
- US Concern
- The US has warned Vietnam about buying Russian weapons.
- Source
- Internal Vietnamese documents obtained by AP