Cyprus Revives Abramovich-linked Firm in Bid to Reclaim €14m in VAT
Cyprus is pursuing billionaire Roman Abramovich for unpaid taxes, raising questions over his complex financial footprint in the EU.
Cypriot authorities have taken the rare step of reviving a dissolved company tied to Russian oligarch Roman Abramovich, in a renewed effort to recover €14 million in unpaid VAT linked to a sham yacht rental scheme, TBIJ reports.
A court order issued Monday reinstated Blue Ocean Yacht Management, a Cyprus-based company at the heart of the scheme, and reappointed its officers—reversing its previous liquidation. The move follows criticism in parliament last month after officials said the tax could no longer be reclaimed due to procedural hurdles.
The unpaid VAT was first exposed in January by The Bureau of Investigative Journalism (TBIJ), in collaboration with the BBC, the Guardian, OCCRP, and CIReN. Leaked documents revealed how Abramovich leased his own superyachts between companies he controlled to exploit VAT exemptions intended for legitimate maritime operations.
Although the Cyprus Supreme Court ruled in March 2024 that Blue Ocean owed €14m, the company had already been wound up.
Joe Powell, UK Labour MP, told TBIJ the investigation had "unearthed evidence" sufficient to prompt legal action in Cyprus—raising questions about the UK’s inaction in a related £1bn tax case tied to Abramovich.
Abramovich denies wrongdoing and insists he acted on independent legal advice.
