Cyprus police investigate Roman Abramovich’s financial affairs

Police in Cyprus have begun investigating the financial affairs of Roman Abramovich following media allegations about the handling of his offshore businesses. The inquiry follows reporting that questioned whether professional advisers used backdated paperwork to conceal assets and avoid tax obligations.

A police representative told a Cypriot parliamentary committee that officers were gathering evidence for analysis, according to reporting by investigative outlet CIReN. A Justice Ministry official said the published information would be assessed to determine whether criminal acts had occurred that warranted further investigation or prosecution.

The allegations emerged from reporting involving BBC Panorama, the Bureau of Investigative Journalism and other media partners. Their investigation examined the work of Deloitte Cyprus and corporate services provider MeritServus for companies linked to Abramovich, the Russian billionaire and former Chelsea football club owner.

According to the International Consortium of Investigative Journalists, leaked records indicated that advisers arranged retrospective changes to company documents affecting substantial assets. The reporting alleged that these changes helped move wealth out of Cypriot company accounts and obscured the financial history of businesses under Abramovich’s control. These remain allegations, rather than findings established by a court in the newly reported inquiry.

One example concerned Kravin Investments, which received $3 billion from a sale of Sibneft shares in 2003, according to the ICIJ account of the investigation. Reporters alleged that documents subsequently backdated to 2003 made funds appear to have been transferred to another Abramovich-linked company in the British Virgin Islands, potentially affecting tax liabilities on interest income.

Abramovich’s lawyers rejected allegations that he knew about or participated in unlawful backdating, concealed assets or evaded tax, the Bureau reported. They said companies linked to him relied on professional advice. Deloitte Cyprus said it complies with applicable laws and could not address specific historical correspondence because it no longer had access to material from more than two decades ago.

The case also raises questions about the ability of supervisory institutions to examine historical conduct. CIReN reported that the Cyprus Public Audit Oversight Board had contacted Deloitte Cyprus and sought legal advice about its authority over events predating the board’s establishment in 2017. The firm had reported difficulties retrieving older communications and records.

Tax officials separately told lawmakers that a six-year limit restricts how far back administrative tax reviews can reach, according to CIReN. They said a court conviction for tax evasion could nevertheless result in an order to recover unpaid taxes, making the distinction between administrative review and criminal proceedings significant.

The next stage is the analysis of evidence and consultation with relevant authorities. Officials indicated that several months could pass before findings become public. Whether the material supports further proceedings remains to be determined, and the opening of an inquiry does not establish wrongdoing by Abramovich or his advisers.