Documents uncover Roman Abramovich's alleged misrepresentation of yacht operations to avoid paying taxes, with insights from financial experts highlighting the criminality of the scheme.
Roman Abramovich’s Superyacht Scheme Exposed: Allegations of Tax Evasion Unwrapped
Roman Abramovich’s Superyacht Scheme Exposed: Allegations of Tax Evasion Unwrapped
An investigation reveals that Roman Abramovich used a complex web of companies to evade millions in VAT through a deceptive superyacht chartering scheme.
In December 2011, while Christmas festivities unfolded, Russian oligarch Roman Abramovich was spotted enjoying time on his superyacht, Eclipse, even though it had been chartered out. This was part of a deeper strategy to exploit tax loopholes uncovered in a joint investigation by the BBC and the Bureau of Investigative Journalism. The findings suggest that Abramovich sought to deceive tax authorities over several years by representing his fleet of luxury yachts as part of a commercial leasing operation, thereby dodging millions of euros in VAT applicable to both the acquisition and maintenance of these vessels.
Prominent tax lawyer Tommaso Di Tanno labeled the situation as "criminal," asserting that clear instances of tax evasion are apparent in the operation. However, Abramovich's legal representatives maintain that he has always acted according to professional tax advice, denying any personal involvement in or knowledge of the supposed deception. The billionaire, who has been sanctioned by the UK since March 2022 due to his ties to the Russian regime, accumulated a fleet of high-profile yachts during the 2000s, including the notable 115m Pelorus and the once-largest private yacht in the world, the 162.5m Eclipse, valued at an estimated $700m.
Evidence captured within over 400,000 leaked documents paints a picture of a sophisticated concealment network run by a Cypriot corporate service provider, MeritServus. It indicates that the setup was intentionally designed to mask the legitimate ownership of the yachts. Abramovich's advisers, coupled with allegedly backdated contracts, sought to classify his extravagant vessels as commercial entities, enabling the oligarch to sidestep substantial tax bills across European Union jurisdictions.
Communication between Abramovich's teams indicates an awareness of the risks involved, with suggestions that the yacht management company sought to maintain a façade of legitimacy. However, experts contend that the operations were artificial constructs designed to obscure true ownership and evade taxation. Tax specialists point out evidence of misrepresentation in agreements, amplifying concerns regarding possible tax evasion.
Past scrutiny of this yacht management scheme revealed existing legal troubles revolving around unpaid duties and VAT assessments. Reports from Cyprus tax officials highlighted a lack of legitimate evidence supporting Blue Ocean Yacht Management’s commercial claims. Ultimately, while the substantial sums owed were pursued by authorities, the exact status of these claims remains unclear due to the company's dissolution shortly after an appeal.
This inquiry forms part of a broader investigation called Cyprus Confidential conducted by the International Consortium of Investigative Journalists (ICIJ), targeting businesses that provide services to associates of President Putin. The revelations surrounding Abramovich's financial dealings and their implications continue to draw attention to the nexus of wealth, power, and potential corruption.
