The UK removes sanctions on a British financier associated with Russia's covert fleet

The UK removes sanctions on a British financier associated with Russia's covert fleet

A British financier has been removed from the U.K. sanctions list after warning others that even lawful dealings can entangle them in sanctions while condemning Moscow’s invasion of Ukraine.

The U.K. government this week lifted sanctions against a British financier who purchased ships that later became part of Russia’s so-called shadow fleet, following his public warning that others should avoid any business dealings that could support Moscow.

John Michael Ormerod, 75, was added to the U.K. sanctions list in May 2025 after acquiring dozens of second-hand tankers that Lukoil, Russia’s second-largest oil producer, used to transport billions of dollars’ worth of oil. In a February statement, Ormerod said the designation — a rare case of a Western government sanctioning one of its own citizens — had a “devastating impact” on him and his family while reaffirming his opposition to Russia’s war in Ukraine.

“I encourage others to learn from my experience and avoid any actions that may support the Russian energy sector or other sectors of strategic significance,” he said.

The sanctions, which froze Ormerod’s U.K. bank accounts and other assets, were part of Britain’s broader effort to disrupt Russia’s military capabilities, global trade operations, and shadow fleet of “ghost ships” — vessels with hidden ownership that rely on fraudulent insurance, switch off tracking systems at sea, and conduct illicit ship-to-ship transfers to conceal the origin of their cargo.

Investigations by the OCCRP and Follow the Money last year revealed that Western shipowners earned at least $6.3 billion selling aging tankers to shell companies, which eventually entered Russia’s shadow fleet.

Ormerod’s role came to light in an October 2024 report by the Financial Times, which found he acquired at least 25 tankers between December 2022 and August 2023 for more than $700 million. Each ship was purchased through a separate special purpose company in the Marshall Islands, with funding advanced by Lukoil’s Dubai-based Eiger Shipping DMCC. Shipping data later showed the vessels transported over 120 million barrels of Russian oil after Ormerod’s acquisition.

After the delisting on Monday, Ormerod welcomed the decision but cautioned that even experienced financiers could become unintentionally entangled in sanctions. “To be clear, I wholeheartedly condemn the Russian invasion of Ukraine,” he said. “I urge others to be watchful. It is easy to be caught up unwittingly in the sanctions regime as I was.”