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Russian Lukoil Adds 25 Old Tankers to Its Shadow Fleet — Financial Times

Journalists discovered that each of these tankers was purchased by a separate offshore company, which was linked to one or even several other firms.

The ships were operated by Dubai-based companies owned by a Pakistani shipping entrepreneur who is currently facing prosecution in British courts for defrauding investors.

All purchases were financed by Dubai’s Eiger Shipping DMCC, which belongs to Litasco Middle East DMCC, the Middle Eastern branch of Lukoil’s oil trading division. Eiger provided upfront funding by pre-chartering the vessels being prepared for acquisition.

Journalists estimated that Lukoil spent over $700 million on these tankers.

Since their purchase, the vessels have been used almost exclusively to transport Russian oil, with 82% of the shipments being Lukoil oil, totaling around 119 million barrels. At $60 per barrel, this amounts to nearly $7.2 billion.

A key figure in this scheme was British accountant John Ormerod. His firm, Ormerod Allen & Co., has provided financial services to the shipping industry since 1990.

In total, Russia’s shadow fleet consists of more than 400 tankers. Despite increasing efforts by Western countries to target individual vessels through sanctions, oil companies shield them behind so many shell firms that it is extremely difficult to prove their connection to Russia.