UK Sanctions Ship Financier Tied to Russian Tanker Sales

The United Kingdom has sanctioned a prominent British shipping finance expert, accusing him of aiding Russia’s shadow fleet by acquiring oil tankers on its behalf.

John Ormerod, a veteran in ship finance, was among those blacklisted on Tuesday, along with two Russian ship captains, 18 vessels linked to the shadow fleet, and 46 financial entities, as part of the UK’s latest sanctions targeting Russia.

An investigation by the Financial Times last year revealed that Russian oil giant Lukoil had backed Ormerod—then 74 years old—through its maritime subsidiary to acquire at least 25 used tankers between December 2022 and August 2023. The total cost of these purchases exceeded $700 million.

Each ship was reportedly bought via special-purpose companies set up by Ormerod in the Marshall Islands. Lukoil’s Dubai-based unit, Eiger Shipping, provided the financial backing by prepaying for future charters of the vessels.

Ormerod’s legal team previously stated to the Financial Times that he had cut ties with the tankers prior to any sanctions being imposed. The transactions for at least nine of the ships were reportedly arranged by the shipbroking firm Braemar.

Ormerod began his career in 1974 as a chartered accountant at Ernst & Young. He later held roles in the shipping divisions of Hambros Bank, Bankers Trust, and Den Norske Bank, before founding his own consultancy, Ormerod Allen & Co, in 1990.

This latest round of British sanctions follows a broader crackdown earlier this month that saw over 100 tankers blacklisted. It also aligns with the EU’s announcement of its most extensive sanctions package to date, targeting 189 vessels believed to be part of Russia’s shadow fleet.

Additionally, the UK government reiterated its commitment to working with international partners to reinforce the $60 per barrel oil price cap introduced in December 2022, which restricts the price Russia can command for crude sold using G7-linked services such as shipping and insurance.