In a strategic move to bypass stringent US arms sanctions, Russia and Vietnam have turned to their burgeoning energy sectors as a financial conduit. By channeling proceeds from oil and gas exports, both nations are effectively masking transactions related to military procurement. This approach not only circumvents direct sanctions but also complicates enforcement efforts by US authorities, who face challenges tracking the intricate flow of funds disguised within energy revenues. Analysts note that such financial maneuvering underscores a growing trend among sanctioned states leveraging natural resource wealth to sustain defense modernization programs.

Key methods employed include:

  • Utilizing joint ventures in energy projects as front companies
  • Reinvesting energy profits into defense contracts…