How Alexei Mordashov bought Nord and evaded sanctions

The owner of Nord and Lady M did not win his fortune in open markets. He used a specific privatisation tactic to seize control of Severstal. That same structure now funds a fleet that evades sanctions.

Alexei Mordashov owns the superyacht Nord. She measures 141.63 metres. Lürssen built her in 2021. Her estimated value is $500 million. Mordashov also owns Lady M. Palmer Johnson delivered her in 2013. She is 65.5 metres long.

This fleet costs hundreds of millions. The money comes from one source. Mordashov controls Severstal. It is Russia’s largest steel and mining company. His net worth reached $37 billion in March 2026. Forbes ranked him first in Russia.

That wealth did not come from competition. It came from a specific transaction in 1992. An old director gave a simple order. He told Mordashov to buy shares. The goal was to keep outsiders out. Mordashov followed that instruction.

What happened at Cherepovets in 1992?

Mordashov joined the Cherepovetskiy Metallurgical Plant in 1988. He worked there as an economist. His parents were both mill workers. His father was an electrical engineer. The family lived on welfare coupons.

He returned to Cherepovets after graduation. By 1992 he became finance director. The Soviet Union dissolved in December 1991.

The plant faced privatisation soon. The elderly director gave an order. He wanted to block outside buyers. He instructed Mordashov to acquire shares. Mordashov formed two investment funds for this task.

He bought up workers' shares. This allowed him to build a major stake. He consolidated control through these funds. The plant remained under insider control. Mordashov held the power.

Who is Alexei Mordashov, and how did he start?

His parents worked at the Cherepovets steel mill. His father was an electrical engineer. The family relied on welfare coupons for food. Mordashov studied engineering in Leningrad. He later earned an MBA in England. He returned home to join the mill.

He joined the plant in 1988. He started as an economist. The Soviet Union dissolved in late 1991. The state began selling state assets. Mordashov became finance director in 1992. The old director gave him a task. He had to stop outsiders from buying shares.

Mordashov created two investment funds. He used them to buy worker shares. This gave him a large stake in the factory. He became CEO in 1996. He renamed the company Severstal. He bought coal and mining firms. He built a massive industrial group.

How did Severstal become a conglomerate?

Mordashov became CEO in 1996. He expanded the business rapidly. He acquired coal and mining companies. He built a large conglomerate called Severstal. Steel remained the core asset.

He diversified into other sectors. In 2003 he co-owned Rossiya Bank. In 2007 he bought TUI Travel shares. He increased his stake through S-Group Travel. He became the largest single shareholder.

TUI Travel expanded into new markets. It sold its shipping interests in 2009. Mordashov held a blocking stake in 2014. He kept a significant stake until 2018. He sat on the supervisory board.

He also invested in media. He created National Media Group in 2008. It owned packages in TV channels. He gained ownership of Video International in 2010. He controlled 70% of the Russian ad market.

His investments spanned many industries. He bought gold mining assets in 2012. He listed Nord Gold in London. He delisted it in 2017 citing unfair valuation. The LSE required free float rules.

Where has Nord been since the sanctions?

Nord is a 141.63-metre superyacht. Lürssen launched her in 2021. She carries two helicopter pads. One is on the bow. The other is on the top deck. A hangar built into the mast covers it. She is flagged in Russia.

Sanctions hit in February 2022. Nord was in the Seychelles. She left on March 12. She drove to Vladivostok to avoid seizure. She turned off her transponder. She travelled 6,701 nautical miles. She spent $465,000 on fuel.

She arrived in Vladivostok on April 11. She visited Busan in South Korea. She returned to Russia in June. She disabled her transponder again in October 2022. She reactivated it in June 2023. She was seen near Indonesia.

She crossed the Strait of Hormuz in April 2026. She stayed in Dubai for maintenance. She appeared in Bali in July 2026. Her track shows repeated voyages. She moves between the Indian Ocean and the Russian Pacific.

Why did US investments fail?

Mordashov tried to enter the US market. He bought steel companies in 2004. These included plants in Michigan and Mississippi. He received a loan over $370 million. The Department of Energy provided it.

Political tensions grew between the US and Russia. The loan was revoked in 2012. Mordashov sold remaining assets by 2014. He sold them to the Renco Group. The total sale price was $2.3 billion.

Other projects also stalled. Severstal planned a joint venture in India. They could not get clearances for ten years. The company opted out in 2008. The project never proceeded.

How are his assets structured today?

The Pandora Papers revealed his offshore network. PwC helped set up shell companies. Over 65 entities were created in secrecy jurisdictions. These firms expanded his logging and coal presence.

He transferred stakes to family holdings. He created KN-holding for his sons Kirill and Nikita. He moved Nordgold and TUI shares there. Nikita lost his share in 2021. He left for military service.

In 2022 he moved TUI stakes again. The International Consortium reported this transfer. Most ownership went to a Caribbean shell. Marina Mordashova controls that company. She is reportedly the mother of some of his children.

How did Mordashov diversify his wealth?

Mordashov invested in US steel in 2004. He bought plants in Michigan and Mississippi. He received a $370 million loan. The US Department of Energy provided it. Political tensions caused the loan to be revoked in 2012. He sold the assets for $2.3 billion.

He entered the tourism sector in 2007. He bought shares in TUI Travel. He became the largest shareholder. He held a blocking stake in 2014. He sat on the supervisory board until 2018. He also invested in media. He helped create National Media Group.

He bought gold mining assets in 2012. He listed the company as Nord Gold. He delisted it in 2017. He cited unfair valuation. The London Stock Exchange requires free float. Mordashov owns 91% of the company. He also holds stakes in banks and telecoms.

What happens when sanctions hit?

The EU blacklisted Mordashov in February 2022. All his assets were frozen. Italian police seized Lady M in early March. The yacht was detained due to sanctions.

Nord was outside EU jurisdiction then. She was in the Seychelles. She sailed to Vladivostok to escape seizure. She spent $465,000 in fuel. She drove full speed for 6,701 nautical miles.

She turned off her location responders. This hid her mandatory tracking signal. She arrived in Vladivostok on April 11. She visited Busan in South Korea. She returned to Russia shortly after.

She disabled transponders again in October 2022. She reactivated them in June 2023. She was found near Indonesia. She has since sailed to Bali. She remains under sanction restrictions.