Abramovich Associates Accused of Falsifying Documents to Hide Billions
A BBC investigation alleges a British accounting firm helped the Russian oligarch obscure his wealth.
Associates of Russian oligarch Roman Abramovich allegedly conspired with the British-headquartered accounting firm Deloitte to falsify documents and hide significant portions of his wealth, according to a BBC Panorama investigation.
The probe, detailed in documents leaked from Cypriot firms and dubbed 'Cyprus Confidential,' suggests that Deloitte Cyprus signed off on altered accounts to conceal assets and evade taxes.
The alleged scheme involved Abramovich's associates and a corporate services firm called MeritServus. When Cyprus introduced a transparency law in 2022 requiring company accounts to be made public, Abramovich reportedly faced the prospect of his wealth being exposed. At that time, Deloitte Cyprus had prepared draft accounts for Amiscan Investments, one of Abramovich's Cypriot companies, which held assets including properties, superyachts, and private jets valued at £508 million. MeritServus then produced a revised set of accounts, which Deloitte Cyprus approved, showing the assets had been transferred to a British Virgin Islands parent company in 2003, thereby not requiring declaration. These revised accounts indicated a balance of only $75,000.
A similar tactic was reportedly used to obscure interest earned on two other Abramovich assets, Kravin Investments ($2 billion) and Electus Investments ($10 billion). Public accounts for Electus in 2006, after a backdated transfer to the British Virgin Islands, showed assets worth just $145,000.
Abramovich's lawyers told the BBC that the oligarch was not involved in the day-to-day operations of these companies and that any reliance on professional advice was proper and legitimate. Deloitte Cyprus stated it could not comment on documents more than 20 years old and no longer accessible, while MeritServus reportedly closed following the leak.
The foundation of Abramovich's wealth has been a subject of controversy, including his acquisition of the state-owned oil company Sibneft in 1995 for £190 million and its subsequent sale back to the Russian government for £10 billion in 2005. During the 1990s, many individuals who acquired Russian state assets during privatization deals reportedly made significant fortunes, with some establishing businesses and acquiring assets in London.
The situation for London's professional services firms changed significantly after Russia's invasion of Ukraine in 2022. Abramovich was compelled to sell Chelsea FC, with the proceeds held in escrow, and his UK properties, along with those of other sanctioned oligarchs, are reportedly in legal limbo.
Deloitte, one of the largest accounting firms globally, has been implicated in various financial dealings with Russian clients since the 1990s.