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Sanctioned Russian Oligarch Abramovich Reportedly Evaded Millions in Taxes Through Yacht Rentals

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Sanctioned Russian Oligarch Abramovich Reportedly Evaded Millions in Taxes Through Yacht Rentals
Roman Abramovich’s superyacht Solaris arrives in Porto Montenegro on March 12, 2022, after departing Barcelona amid UK sanctions following Russia’s invasion of Ukraine. (Source: Getty Images)

Russian-Israeli oligarch Roman Abramovich allegedly evaded millions in taxes in EU countries through a yacht leasing scheme, according to a joint investigation by the BBC, The Guardian, and The Bureau of Investigative Journalism.

The report, published on January 28, is part of the broader Cyprus Confidential investigation, which examined leaked documents related to offshore financial practices.

The investigation claims that Abramovich used a network of companies to lease five luxury yachts to himself or other entities under his control, enabling him to claim value-added tax (VAT) exemptions in Cyprus and other jurisdictions.

The yachts, including Eclipse, Ecstasea, Luna, Le Grand Bleu, and Pelorus, were reportedly registered as cargo, commercial, or passenger vessels and leased through Blue Ocean Yacht Management, a Cyprus-based company. This entity allegedly sub-leased the vessels to firms registered in the British Virgin Islands, which, according to the report, were also controlled by Abramovich.

Financial records cited in the investigation indicate that between 2005 and 2012, Blue Ocean Yacht Management’s revenues and expenditures were nearly identical, resulting in minimal corporate tax payments. Legal proceedings in Cyprus and Italy examined the scheme, with Cypriot tax authorities alleging unpaid VAT of up to €17 million.

A 2018 appeal determined that Blue Ocean had not provided evidence of legitimate commercial activity, leading to the rejection of claims that the yachts were used for business purposes. The final assessment reduced the alleged tax liability to €14 million, though it remains unclear whether the sum was settled before Blue Ocean was dissolved in 2024.

Abramovich’s legal representatives denied any involvement in tax evasion.

Abramovich, who previously owned Chelsea FC and served as the governor of Russia’s Chukotka region, has been under international sanctions since 2022 following Russia’s full-scale invasion of Ukraine.

In the aftermath of the invasion, he was involved in discussions related to Russian-Ukrainian negotiations and later assisted in a prisoner exchange, according to media reports.

Earlier, a Bloomberg investigation revealed that Russian oligarchs, including those with close ties to Vladimir Putin, received over $11.3 billion in dividends in 2023 and early 2024, despite ongoing Western sanctions.

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