Roman Abramovich: New Leak Sheds Light on Tax Avoidance in Cyprus
The new files reveal how “Blue Ocean Yacht Management,” a company registered on the island, apparently played a crucial role in managing Abramovich’s superyacht fleet.
A fresh wave of revelations has put Russian billionaire Roman Abramovich—and his fleet of stunning superyachts—back in the spotlight. According to a newly uncovered set of files dubbed “Cyprus Confidential,” a complex offshore network, partly routed through Cyprus, may have helped the former Chelsea FC owner avoid paying taxes worth tens of millions of dollars.
Abramovich became a household name not just for his vast fortune and sports investments, but also for his taste in towering luxury vessels. His 162-meter superyacht, Eclipse, once the largest private yacht in the world, famously hosted an extravagant New Year’s Eve party in St Barts in 2011, featuring a private performance from the Red Hot Chili Peppers. With multiple helipads, pools, and a private cinema, the Eclipse symbolized the opulence of Abramovich’s lifestyle.
Yet while funds flowed freely on lavish parties—attended by A-list celebrities, sports stars, and Hollywood figures—recent evidence suggests that at least some of the yacht-related expenses may have been structured to dodge or significantly reduce tax payments in various jurisdictions, including Cyprus.
The new files—part of what sources call the largest-ever leak from Cyprus’s offshore financial sector—reveal how “Blue Ocean Yacht Management,” a company registered on the island, apparently played a crucial role in managing Abramovich’s superyacht fleet. Investigative reports from multiple media outlets, including the Guardian, BBC, Der Spiegel, ZDF, and the Organized Crime and Corruption Reporting Project (OCCRP), suggest that the vessels were effectively chartered to themselves via a web of offshore companies.
Under typical EU rules, private yachts must pay Value Added Tax (VAT) on goods and services, such as fuel, maintenance, and berth fees, in the countries where they operate. However, if a yacht is formally registered as a “commercial vessel,” it can avoid or reduce VAT obligations, provided the yacht actually engages in bona fide charter or commercial activity.
Documents from Cyprus Confidential allege that the yachts were labeled “commercial” but never truly rented out to unrelated parties—an arrangement that investigators say could amount to deliberate tax evasion. In particular, Cypriot authorities became suspicious years ago when substantial VAT liabilities appeared unpaid. Court documents indicate that Blue Ocean was eventually handed an assessment of 14 million euros in back taxes by the Cypriot tax office for the period between 2005 and 2010. Despite appeals, Cyprus’s Supreme Court upheld the decision in March 2024.
Internal communications cited in the leaked files show that some advisors flagged these setups as “high-risk.” They recognized the possible legal consequences if revenue agencies in Cyprus or other EU states examined whether these supposed “charters” were purely nominal. Investigators claim that in many instances, charter documents were drafted after the yachts had already completed their voyages, casting further doubt on their commercial validity.
In response to the publications, lawyers for Abramovich deny any wrongdoing. They argue that the billionaire followed professional tax and legal advice and at no point was personally aware of the implementation details of the alleged scheme. Yet experts consulted by international media outlets maintain that if there was no genuine commercial activity, the practices described could qualify as tax evasion under EU law.
For Cyprus, these disclosures are both a source of embarrassment and a catalyst for potential reforms in its offshore sector. The island has long been known as a global hub for company registration and trusts, but it has also faced pressure to strengthen oversight, especially regarding high-net-worth individuals from Russia and elsewhere.
Although Blue Ocean was eventually dissolved, the case has reignited debates over offshore transparency and whether sufficient regulatory checks are in place. With the Supreme Court’s 2024 ruling upholding the multimillion-euro assessment, Cyprus may now be pressured to step up its pursuit of unpaid taxes in other offshore arrangements.
In the wake of these revelations, it remains to be seen how thoroughly authorities will hold individuals or their financial service providers accountable. Cyprus Confidential has shed new light on how easily the super-rich can navigate murky corporate waters, often escaping meaningful scrutiny for years.
For now, Roman Abramovich’s legendary superyachts—once famed mainly for on-board concerts, star-studded parties, and luxury amenities—are also becoming symbols of a broader offshore system under increasing fire from regulators and the public alike.