Financial records reviewed by BBC Panorama and the Bureau of Investigative Journalism suggest that accountancy firm Deloitte helped facilitate arrangements that concealed the scale of Roman Abramovich’s wealth and potentially reduced his tax liabilities.
The documents allegedly show that financial records were altered and backdated to make billions of pounds in cash and assets appear to belong to different companies, shielding the former Chelsea FC owner from paying millions in taxes.
Abramovich’s legal representatives have denied wrongdoing, saying he was entitled to rely on advice provided by professional advisers.
£7.5 Billion Business Fortune Allegedly Transferred Between Companies
One set of leaked records concerns Electus Investments, a Cyprus-based company associated with Abramovich’s business interests.
According to the investigation, advisers at corporate services firm MeritServus arranged for the billionaire’s £7.5 billion ($10 billion) business fortune to be transferred to a British Virgin Islands company bearing the same name.
The documents allegedly indicate that the transfer was backdated to 2003, making it appear to have taken place before Cyprus introduced new transparency rules in 2006.
When the Cypriot company’s accounts were subsequently published, it reportedly appeared to hold assets worth just £110,000 ($145,000), despite the much larger fortune allegedly associated with its previous holdings.
MeritServus was owned by Deloitte until 2005.
Following their separation, the two firms continued working with Abramovich’s associates in managing his international financial affairs.
Accountancy Professor Questions Alleged Backdating
Lord Sikka, a Labour peer and accountancy professor, criticised the practices described in the leaked documents, arguing that backdating financial transactions could amount to a serious breach of companies’ statutory obligations.
“The amounts are very significant, very material, and they are being backdated,” he said, describing the alleged retrospective transfers as an attempt to cover up earlier arrangements.
Sikka added that companies are required to publish accounts that provide a true and fair picture of their financial position.
If transaction dates are deliberately misrepresented, he argued, that requirement may have been violated.
He characterised the alleged practices as a “fiddle factory”, suggesting that transactions were repeatedly altered and backdated.
£507 Million Property Portfolio Allegedly Removed From Company Accounts
A separate group of leaked documents concerns Amiscan Investments, another Cyprus-based company linked to Abramovich.
The investigation alleges that assets worth approximately £507 million ($672 million) were removed from the company’s published accounts through a purported transfer to a British Virgin Islands entity.
The transfer was allegedly backdated by three years.
The assets reportedly included a mansion in West Sussex, a luxury apartment in London and an estate in southern France.
The portfolio also allegedly included supercars, helicopters, private jets and several boats.
Among them was the yacht Pelorus, valued at £111.5 million ($147.5 million).
According to the investigation, the accounting arrangements made these assets appear to have been transferred out of Amiscan Investments earlier than they actually were.
Another Company’s Records Allegedly Altered to Conceal £1.5 Billion
The investigation also examined Kravin Investments, a third Cyprus-based company associated with Abramovich.
Leaked documents allegedly show that earlier financial records were changed to make it appear that the company did not own nearly £1.5 billion ($2 billion).
The alleged revisions meant the company appeared to have no taxable interest income from those funds.
An email sent by MeritServus to Abramovich’s Russian associates in 2005 referred to a plan developed after a meeting with Deloitte.
“If you agree, it will be necessary to change the financial statements and the accounting records accordingly for 2003 and 2004,” the email stated.
A month later, an associate in Russia replied: “I agree.”
The investigation alleges that MeritServus subsequently produced backdated documents portraying Kravin Investments as holding and investing the money on behalf of its parent company in the British Virgin Islands.
Under that arrangement, the records allegedly made it appear that Kravin did not own the funds itself and therefore had no corresponding tax liability in Cyprus.
Lawyer Says Alleged Arrangements Were Designed to Avoid Tax
Andrew Mitchell KC, a lawyer specialising in banking and financial services, criticised the arrangements described in the leaked records.
He said the alleged transactions appeared to be a direct attempt to protect assets from taxation that would otherwise have been payable.
Mitchell added that if comparable conduct had occurred in England involving millions of pounds, HM Revenue and Customs would be likely to consider whether a prosecution was warranted.
His comments concerned the allegations presented in the investigation rather than a judicial finding that wrongdoing had occurred.
Abramovich’s Sanctions and Reported Residence in Turkey
Abramovich, the Russian billionaire who formerly owned Chelsea FC, was sanctioned after Russia launched its invasion of Ukraine.
He has been described as having a close personal relationship with Russian President Vladimir Putin, a claim he has denied.
He is understood to be living in Turkey, which has not imposed sanctions on Russian oligarchs in the same way as the United Kingdom and other Western countries.
Abramovich’s Lawyers and Deloitte Respond to Allegations
Responding to the investigation, Abramovich’s lawyers said he had not been involved in the day-to-day operation of the companies in question.
They maintained that where professional advisers proposed financial arrangements, his reliance on their advice was “entirely proper and legitimate”.
Deloitte Cyprus said it could not comment on the specific allegations because the documents dated back more than 20 years and were no longer accessible.
