The "Cyprus Confidential" investigation, conducted by the International Consortium of Investigative Journalists (ICIJ) and Paper Trail Media, has revealed a complex web of financial maneuvers aiding Russian oligarchs and Putin allies in evading Western sanctions. The exposé, based on over 3.6 million leaked documents, sheds light on Cyprus's role as a hidden sanctuary for Russian wealth, especially in the context of the Ukraine conflict.

>>Cyprus Confidential: Uncovering a Global Financial Nexus<<

Dubbed the "Moscow of the Mediterranean," Cyprus emerged as a key player in shielding Russian assets. The investigation unveiled the island's intricate financial networks, facilitating the movement and protection of oligarch wealth. Key figures such as Roman Abramovich, Alexander Abramov, and Alexander Frolov were implicated in these covert operations, leveraging Cyprus's financial services to safeguard their fortunes.

Central to the revelations is the role of PwC's Cyprus arm. According to the global investigative report, this branch of the global accounting giant was instrumental in assisting Alexey Mordashov, a prominent Russian industrialist, in transferring $1.4 billion to evade EU sanctions. This complex operation also entailed concealed payments to a noted German journalist, highlighting the extent of Russian propaganda and global influence. 

PwC told ICIJ that its Cyprus arm, the biggest accounting firm on the eastern Mediterranean island, had culled its client list after the Russian invasion of Ukraine.

The firm said it had terminated “approximately 150 client groups,” 60 as a result of its Russia-related sanctions policy and a further 90 after a wider “de-risking review. All PwC firms, including PwC Cyprus, take the application of sanctions against clients and sanctions prohibiting various professional services extremely seriously,” it said in a statement.

The investigation identified nearly 800 companies and trusts linked to Russians under sanctions, illustrating the extensive reach of these financial networks. Figures like Petr Aven, a strategist behind Russia's financial powerhouse Alfa Group, utilized Cyprus firms to transfer millions away from European oversight, showcasing the pivotal role of Cyprus in global finance.

"Cyprus Confidential" brings into sharp focus the effectiveness of financial sanctions as a tool against the flow of illicit funds. The revelations point to a systemic issue where financial enablers, knowingly or unknowingly, aid in circumventing international norms and accountability.

>>Nikos Christodoulides Affirms Commitment to Integrity in Light of ICIJ Investigation<<

The investigation uncovers the murky intersection of wealth, power, and politics in the global financial system and underscores the challenges in distinguishing between legal and ethical conduct within the shadows of international finance, spotlighting the need for greater transparency and regulation in offshore financial centers.

Read the Full Investigation

The Cyprus Confidential investigation reveals how Cyprus remained an unseen hub for money laundering for Russian oligarchs and authoritarian regimes.

The investigation identifies:

• Arms dealers.

• Digital surveillance companies.

• A Syrian oil company under Assad.

Financial service providers and multinationals were found willing to find alternative routes for the funds of President Putin's inner circle, despite sanctions imposed since 2014.

Documents from Cyprus Confidential show that Cypriot service companies continued to work for 25 Russians who were under Western or Ukrainian sanctions following the annexation of Crimea (2014) & the war in Donbass (Eastern Ukraine). Data analysis showed that Cypriot ompanies worked for entities controlled by Russia and registered in tax havens (such as: British Virgin Islands, Jersey, Isle of Man, Liechtenstein, Hong Kong).

The ICIJ identified 800 companies & trusts registered in tax havens & controlled by Russians, who have been under sanctions since 2014.

Among these are over 650 Cypriot companies & trust funds. According to Cyprus Confidential, PwC in Cyprus collaborated with at least 12 Russians who had already been sanctioned in 2014, while sanctions were imposed in 2022 on 39 more Russian clients due to their ties with President Putin. PwC placed its Cyprus office & 1,100 employees at the service of Putin's allies amid the Russian invasion of Ukraine.

For example, industrialist A. Mordashov, appears to have transferred an investment of 1.4 billion dollars from his name the day after Western sanctions were imposed. The Cypriot MeritServus, linked to Abramovich, handled 100 Cypriot companies and trusts of Russian oligarchs' interests.

Among these is the Kremlin propagandist K. Malofeyev, who was on the list of Western sanctions. K. Malofeyev had come under scrutiny by the US Department of Justice in 2015 for his attempt to get involved in the television landscape of Greece and Bulgaria, with the creation of a TV station that would promote Russian positions.

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