Cyprus-based tax evasion scheme uncovered through superyacht leasing

·

A major tax evasion scheme involving Russian billionaire Roman Abramovich’s superyachts has been exposed, revealing how he exploited Cyprus’ offshore business environment to evade EU taxes.

An investigation by the BBC and the Bureau of Investigative Journalism uncovered leaked documents showing that between 2005 and 2012, Abramovich’s companies created a fake yacht-leasing business in Cyprus to avoid taxes on his $1.2 billion fleet, which included the Eclipse, once the world’s longest yacht.

The scheme centred around leasing the yachts to “independent customers” who were actually companies controlled by Abramovich through offshore trusts in the British Virgin Islands.

The Pelorus superyacht.

Despite being registered as commercial vessels, the yachts were used exclusively by Abramovich, his family, and associates.

The operation was managed by Blue Ocean Yacht Management, a Cyprus-based company that appeared legitimate on paper but was secretly designed to skirt tax laws. Leaked emails revealed that Abramovich’s team made efforts to present the operation as “independent” to avoid scrutiny.

Cypriot authorities eventually caught on and fined Abramovich’s company €14 million for unpaid VAT in 2012, a ruling upheld by the courts in 2024. It remains unclear whether the fine has been paid.

The leaked documents also exposed that Abramovich himself, referred to as “RA,” was the most frequent user of the yachts, with fabricated charter agreements used to justify financial transactions.

Roman Abramovich’s superyacht Luna. Photo: Pixsell / Alamy Stock Photo.

Cypriot professionals, including accountant Demetris Ioannides—sanctioned by the UK in 2023—and the law firm Chrysses Demetriades were implicated in assisting the scheme.

Abramovich has denied personal involvement, though evidence points to a coordinated effort by his team to evade millions in taxes.

Experts argue the case highlights the risks posed by offshore jurisdictions like Cyprus, which allow for hidden ownership and tax avoidance through legal loopholes.

Source: Ekathimerini.

Cretan Convention - Web Banner

Advertisement

Share:

KEEP UP TO DATE WITH TGH

By subscribing you accept our Terms of Service and Privacy Policy.

Advertisement

Latest News

Greek Cultural Precinct at Northcote’s Holy Monastery of Axion Estin moves closer to reality

Plans to transform the Holy Monastery of Axion Estin in Northcote into a landmark Greek Cultural Precinct have entered a critical new phase.

NUGAS Ball 2025: A night of dance, culture and community for Greek youth

Arguably one of the biggest annual Greek events in Melbourne, the 2025 NUGAS Ball welcomed 755 guests to Crown Palladium on Sunday.

St George Orthodox Church in SA marks 65 years of community, culture and faith

The 65-Year Gala for the Greek Orthodox Community and Parish of St George, Thebarton was more than an anniversary.

Aegean Nights: A vibrant new dance party for Sydney’s Greek youth

Progressive Community of Agiasos (PCA) presents Aegean Nights, a vibrant new Dance Party event designed to unite the younger generation.

Adelaide Council backs sister-city MoU with Athens in unanimous vote

Adelaide has unanimously approved an MoU to formalise a sister-city relationship with Athens, paving the way for deeper ties.

You May Also Like

Greek youth in Perth hold meeting with Secretary General for Greeks Abroad

General Secretary for Greeks Abroad and Public Diplomacy, Professor John Chrysoulakis, has held his first meeting with diaspora in Australia.

Greece Lifts Mandatory Quarantine for Covid-free Travelers from Australia

Greece has lifted its quarantine requirement for travelers from another seven countries, including Australia.

South Australians dressed as Evzones hit the road to raise funds for kids in need

Another year, another SA Variety Bash for ‘Team Car ENA – The Greeks’ who are set to hit the road in August and raise funds for kids in need.