Russia’s state oil producer has explored the idea of creating a trading venture in Dubai, the latest sign of how sanctions against Moscow are disrupting the nation’s export system.

Officials from Rosneft PJSC visited the emirate in the past month and met with advisers who could assist in setting up a new entity, according to people with knowledge of the matter, who asked not to be identified as the details are private.

Rosneft didn’t immediately respond to a request for comment.

It’s not clear what conclusions the Rosneft officials drew from their visit, what the scope of any new entity might be, or where it would leave Energopole SA, the producer’s Geneva-based trading arm. 

The meetings took place long before last week’s announcement by Swiss authorities that the country would follow European Union sanctions targeting Russia. But those measures highlight the urgent need that some companies have to find Moscow-friendly jurisdictions.

Dubai has become a leading destination for Russians and Russian companies moving out of the country. The United Arab Emirates, of which Dubai is the biggest city, has said it won’t follow European countries and the US in sanctioning Russian entities. It’s also attractive due to its low taxes.

Many of the world’s largest independent traders and oil companies have already scaled back their dealings with Moscow following the invasion of Ukraine and the sanctions that followed. 

But those with a direct Russian connection are looking for alternatives.

Litasco SA, a trading unit of Russia’s Lukoil PJSC, is looking at Dubai for a new head office, S&P Global Commodity Insights reported June 6. Litasco declined to comment at the time but said it would ensure it complied with all applicable sanctions.

Moscow-based coal producer SUEK and Zug, Switzerland-based fertilizer firm EuroChem, both founded by billionaire Andrey Melnichenko, are opening local trading units in the Gulf oil exporter. 

The 50-year-old resigned from the boards of both companies before EU sanctions imposed over his alleged ties to the Kremlin, that Switzerland then mirrored.