**Russian Businessman Avoids Taxes with Fake Yacht Scheme**
A joint investigation by the BBC, The Guardian, and The Bureau of Investigative Journalism has found that Russian-Israeli oligarch Roman Abramovich avoided paying millions in taxes through a fake yacht-for-hire scheme. The investigation was published on January 28.
Abramovich acquired five yachts in the 2000s, which he then “hired” for himself through controlled companies to claim an exemption from value-added tax (VAT) in Cyprus and elsewhere. This allowed him to avoid paying taxes on the yachts’ value.
**Who is Roman Abramovich?**
Abramovich has a net worth of around $9 billion and holds Russian, Israeli, and Portuguese citizenship. He was formerly the governor of the Chukotka region in Russia’s far east and previously owned Chelsea FC, which he was forced to sell after the outbreak of the full-scale invasion of Ukraine.
**Tax Evasion Scheme**
The investigation found that Abramovich acquired the Eclipse, Ecstasea, Luna, Le Grand Bleu, and Pelorus superyachts shortly after selling the Russian oil company Sibneft in 2005. He then registered the vessels as cargo, commercial, or passenger yachts and “leased” them to a Cyprus-based company called Blue Ocean Yacht Management.
Blue Ocean then rented the yachts to other companies that were also controlled by Abramovich, allowing him to generate profit without paying VAT. The oligarch’s companies falsely claimed the right to tax exemption by listing the yachts as central to their business.
**Denials and Investigations**
Abramovich’s lawyers denied any knowledge of a tax evasion scheme. However, experts consulted by the journalists said that this may amount to tax evasion. The article came as part of the joint Cyprus Confidential investigation into files leaked in 2023.
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