Deloitte Cyprus Signed Abramovich Asset Transfer Papers

Leaked emails and financial records reviewed by OCCRP show Deloitte Cyprus helped companies beneficially owned by Roman Abramovich prepare backdated documents that transferred billions of dollars in assets from Cyprus to British Virgin Islands companies. The records show the actions involved tax and transparency issues in Cyprus.

The files from MeritServus, a Cypriot corporate services provider, show discussions in the mid-2000s involving bank deposits, yachts, and luxury real estate. OCCRP reported the documents indicated efforts to make asset transfers appear to have occurred earlier than they actually did.

One case involved almost $2 billion in bank deposits from the 2003 sale of shares in Russian oil company Sibneft. OCCRP reported that a Cyprus company's 2005 financial report stated it held $870 million in trust for a BVI parent in 2004, before the backdated paperwork was prepared.

Another case involved Deloitte Cyprus staff certifying 2003 financial statements in 2006 for a Cyprus company beneficially owned by Abramovich. The documents made it appear that nearly $700 million in assets had been transferred to a BVI parent company.

Deloitte Cyprus said "acts in compliance with applicable laws" said Deloitte Cyprus.

Deloitte Cyprus declined further comment, saying it could no longer access correspondence from about 20 years ago. The company was asked about records involving the preparation of historical paperwork.

A law firm representing Abramovich said there was no evidence he knew about or approved the preparation of the documents. The firm said his companies relied on professional advisers.

"participated in, authorised or knew of" the plans to prepare, backdate, or falsify records, a law firm representing Abramovich said.

The lawyers said Abramovich's companies used outside firms to establish, administer, and audit their structures. They rejected claims that the companies improperly handled tax matters.

"engaged professional firms, including Deloitte, … to establish, administer, and audit them. Those firms were relied on…to do so properly and in accordance with all applicable legal requirements." a law firm representing Abramovich said.

The law firm also said the companies did not conceal assets unlawfully and denied allegations involving tax violations.

"evaded or sought to evade tax" a law firm representing Abramovich said.

The lawyers repeated that Abramovich's companies followed advice from professional firms and disputed allegations that assets were improperly concealed.

"entirely proper" a law firm representing Abramovich said.

Deloitte Cyprus and MeritServus worked with Millhouse Capital U.K. Limited and Millhouse LLC in Russia, according to the leaked records. MeritServus was sanctioned by the U.K. government in 2023, along with its chairman Demetris Ioannides.

Ioannides was described by the U.K. government as having created offshore arrangements linked to Abramovich's assets. The records reviewed by OCCRP also examined the role of MeritServus in managing corporate structures.

"murky offshore structures" the U.K. government said about MeritServus.

The U.K. government alleged those structures were used in connection with Abramovich assets, while lawyers for Abramovich denied wrongdoing.

"used to hide" the U.K. government said regarding assets worth almost $1 billion.

Alex Cobham, an economist and chief executive of the Tax Justice Network, commented on the implications of creating false records for tax authorities after reviewing a summary of the evidence.

"deliberate creation of false documentary evidence to support a position that you know isn't true, and present it to the tax authority" said Alex Cobham, economist and chief executive of the Tax Justice Network.

Cobham also discussed the expected role of major accounting firms in maintaining reliable financial information for investors and authorities.

"are supposed to be the ones upon whom investors and also authorities can rely that the numbers are basically straight," said Alex Cobham, economist and chief executive of the Tax Justice Network.

Andrew Mitchell KC, a barrister at the legal practice 33 Chambers, reviewed a summary of the leaked evidence. He assessed the backdating efforts involving Deloitte Cyprus, MeritServus, and Millhouse.

"a straightforward and blatant move to protect from legitimate taxation assets which should otherwise have been subject to tax." said Andrew Mitchell KC, barrister at 33 Chambers.

Abramovich remains under investigation by authorities in Jersey in connection with suspected money laundering related to proceeds from the sale of Sibneft. His lawyers said he denies the allegations and that no charges have been brought.