Cypriot police have launched an investigation into Roman Abramovich’s financial affairs following a BBC Panorama report alleging that accounting firm Deloitte helped falsify documents to conceal his wealth and evade taxes. The allegations raised concerns about the conduct and integrity of some of Abramovich’s professional advisers.
The case follows earlier reporting by the BBC and the Bureau of Investigative Journalism (BIJ) that alleged a tax scheme enabled Abramovich to avoid millions in taxes on the operating costs of his yachts. Following those revelations, two former company directors were indicted in Cyprus and are due to stand trial over EUR 25 million in unpaid VAT, highlighting the broader tax compliance and potential criminal implications of the offshore arrangements.
What the Report Alleges
The investigation follows a BBC and BIJ report alleging that financial accounts approved by Deloitte in Cyprus in 2006 caused assets worth USD 672 million, including superyachts, mansions and private jets, to disappear from Abramovich’s company accounts.
The report also alleges that Deloitte advised on a scheme involving falsified documents intended to avoid a substantial tax liability on Abramovich’s wealth. These allegations have raised serious questions about the accounting firm’s role and the potential use of corporate structures to conceal assets and evade taxes.
The allegations are based on leaked files containing thousands of documents detailing Abramovich’s finances and the activities of a network of offshore companies administered from Cyprus between 1995 and 2022. Since 2023, the BBC and several media partners, including the BIJ, The Guardian and the Organised Crime and Corruption Reporting Project, have examined these documents as part of the International Consortium of Investigative Journalists’ Cyprus Confidential investigation.
Cypriot police representative Andreas Anastasiades confirmed to MPs that the Financial Crime Unit had begun collecting evidence. The investigation is expected to continue for several months as authorities examine the documents and any companies or individuals potentially involved in the alleged financial misconduct, including Deloitte.
Roman Abramovich’s lawyers deny that he evaded taxes or concealed his wealth, while Deloitte Cyprus maintains that it operates in compliance with applicable laws. The police investigation was announced during a parliamentary committee meeting in Nicosia focused on preventing and combating money laundering.
Conclusion
The ongoing investigations in Cyprus underscore the increasing scrutiny faced by offshore financial networks and professional advisory firms. As authorities delve into the complex web of shell companies and audited accounts, the outcome could set a significant precedent for international tax enforcement and corporate accountability.
