Cyprus probes Deloitte over Russian billionaire Abramovich’s assets — Cyprus Mail
In Cyprus, the public audit oversight authority is taking action over allegations against Deloitte Cyprus of helping conceal billions of euros in assets belonging to Russian billionaire Roman Abramovich through backdated documents. Panos Prodromitis, the authority’s CEO, told Cyprus Mail this.
According to him, the agency is aware of the recent publications and is taking all necessary action within its legal powers and obligations, acting in the public interest.
Allegations concerning documents
The claims concerning Deloitte Cyprus are set out in a joint investigation by BBC Panorama, the Bureau of Investigative Journalism and OCCRP, based on thousands of leaked emails and corporate documents. The investigation’s authors allege that Deloitte Cyprus advisers dated documents as if asset transfers had taken place several years earlier. According to their findings, this could have reduced tax liabilities and allowed the avoidance of Cypriot legal disclosure requirements.
One episode concerns the Cypriot company Amiscan Investments. A draft of its 2003 accounts listed assets of approximately €578 million, including yachts, aircraft and luxury real estate in France and the United Kingdom. According to the investigation, an agreement prepared in 2006 was dated 4 January 2003. The document provided for the transfer of 19 subsidiaries to Kelvedon Worldwide, registered in the British Virgin Islands. After the accounts were approved in December 2006, Amiscan reported assets of approximately €65,000.
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Electus and Kravin transactions
Another case concerns Electus Investments, which the investigation links to assets worth more than €8.6 billion and ownership of Millhouse UK. Journalists allege that the assets were transferred in 2006 to a company of the same name in the British Virgin Islands, but the transaction was dated 20 November 2003. Electus later listed assets of approximately €125,000 in its public accounts.
A third episode concerns Kravin Investments, which received around €2.6 billion in 2003 from the sale of Sibneft shares to Yukos. The investigation alleges that Deloitte Cyprus, MeritServus and Abramovich’s associates discussed the possibility of presenting funds in bank accounts as having been transferred in 2003, which could have helped avoid tax on interest income.
Deloitte Cyprus told Cyprus Mail that it operates in accordance with applicable legislation but declined to comment on the specific allegations because of the age of the documents. Abramovich’s lawyers denied wrongdoing, saying there was no evidence of his involvement, knowledge or instruction regarding the possible falsification of documents.
