Russian-Israeli oligarch Roman Abramovich evaded millions in taxes in EU countries through a fake yacht-for-hire scheme, according to a joint investigation by the BBC, The Guardian, and The Bureau of Investigative Journalism published on Jan. 28.
The businessman acquired five yachts in the 2000s that he then "hired" for himself through controlled companies to claim an exemption from value-added tax (VAT) in Cyprus and elsewhere, the investigation said, citing leaked documents.
Abramovich has a net worth estimated to be around $9 billion and has Russian, Israeli, and Portuguese citizenship. He was formerly the governor of the Chukotka region in Russia's far east and previously owned Chelsea FC, which he was forced to sell after the outbreak of the full-scale invasion of Ukraine.
He and other top Russian oligarchs were sanctioned after the beginning of the full-scale invasion in February 2022. The oligarch now resides alternatively in Tel Aviv, Istanbul, and Russia's Sochi.
According to the investigation, Abramovich acquired the Eclipse, Ecstasea, Luna, Le Grand Bleu, and Pelorus superyachts shortly after getting rich from selling the Russian oil company Sibneft in 2005.
The vessels, owned by various companies registered in the British Virgin Islands ultimately administered by Abramovich's trust, were registered as cargo, commercial, or passenger yachts and "leased" to the Cyprus-based company Blue Ocean Yacht Management.
Blue Ocean then reportedly rented the yachts to other companies, which were, in fact, also controlled by Abramovich. This scheme helped the businessman generate profit without paying VAT.
The oligarch's companies falsely claimed the right to tax exemption by listing the yachts as central to their business. According to experts consulted by the journalists, this may amount to tax evasion.
Abramovich's lawyers denied any knowledge of a tax evasion scheme.
The article came as part of the joint Cyprus Confidential investigation into files leaked in 2023 and led by the International Consortium of Investigative Journalists and Paper Trail Media.
Shortly after the outbreak of the full-scale invasion, Abramovich participated in peace negotiations between Russia and Ukraine. Bloomberg reported that he visited Kyiv as part of the talks in April 2022, which his spokesperson denied.
Later in the year, Abramovich met with Saudi Crown Prince Mohammed bin Salman to help negotiate a prisoner exchange.
Nate Ostiller
(Updated: )
