The financial connections of Russian billionaire Roman Abramovich, known for his multi-billion dollar fortune, have come under scrutiny in the Republic of Cyprus. The Cypriot police have launched an ex officio investigation into allegations that Russian billionaire Roman Abramovich's multi-billion dollar fortune was concealed through Cypriot companies and that taxes were evaded. According to reports in the Greek Cypriot press, financial transactions carried out through Abramovich's companies in Southern Cyprus have been placed under review following documents published by BBC Panorama and international investigative journalism organizations.
The true size of Abramovich's wealth was concealed
In an investigation published by the BBC, it was alleged that the Cyprus-based branch of the international auditing firm Deloitte committed irregularities in the financial records of companies belonging to Abramovich. According to the investigation, assets worth a total of 672 million dollars, consisting of superyachts, luxury residences, and private jets belonging to Abramovich's Cyprus-based company Amiscan Investments, were removed from company accounts using backdated documents. It was alleged that these transactions helped conceal the true size of Abramovich's wealth and avoid the payment of large amounts of taxes.
10 billion dollar fortune under scrutiny
In examinations by BBC Panorama, The Bureau of Investigative Journalism, and international investigative journalism organizations, it was claimed that at least 10 billion dollars of assets belonging to Abramovich were helped to be concealed through backdated documents prepared between 1999 and 2013. The investigation stated that correspondence and financial documents leaked from the Cyprus-based company MeritServus were examined. It was noted that MeritServus had served in the management of companies belonging to Abramovich for many years and was linked to Deloitte's Cyprus branch until 2005.
Cypriot police launch 6-month investigation
Andreas Anastasiades, Deputy Director of the Cyprus Police Department for Combating Crime, stated in his address to the House of Representatives' Committee on Institutions that they have begun collecting evidence regarding the allegations brought to light by the BBC. Anastasiades stated that the investigation specifically covers financial transactions between 2003 and 2006, and that the inquiry will be conducted comprehensively due to the long time that has passed since the events. Announcing that the investigation could take approximately 6 months, Anastasiades said that the documents obtained will be evaluated together with the relevant institutions and that necessary proceedings will be initiated if criminal elements are identified.
Powers of Cypriot audit institutions are being debated
Andreas Zachariades, Permanent Secretary of the Ministry of Finance of the Republic of Cyprus and representative of the Public Audit Oversight Board, stated that they have contacted the relevant audit firm and requested an explanation. Zachariades noted that reaching evidence is difficult because the events date back to 2003-2006. Reminding that the audit institution was established in 2017, Zachariades stated that the institution's authority regarding events prior to its establishment is legally limited.
Deloitte did not accept the accusations
Deloitte Cyprus, which is at the center of the allegations, stated in a statement to the Greek Cypriot press that it could not comment on the details of transactions from past years. The company maintained that it carried out its activities in accordance with applicable laws and auditing standards.
Lawyers denied the allegations
Abramovich's lawyers also denied allegations that their client participated in tax evasion or the illegal backdating of documents. The lawyers stated that Abramovich received professional financial and legal advisory services and was unaware of any illegal activity in the transactions in question.
Outcome of the investigation is awaited
While no finalized criminal finding or conviction has been announced within the scope of the investigation, it was reported that the allegations are being examined in terms of suspicions of tax evasion, money laundering, and irregularities in financial documents.
News Source: 12punto
