Abramovich’s Superyacht Tax Scheme Exposed: A Decade of Deception

Fri Mar 14 2025 15:23:59 GMT+0200 (Eastern European Standard Time)
Abramovich’s Superyacht Tax Scheme Exposed: A Decade of Deception

Investigation reveals how Russian oligarch Roman Abramovich allegedly evaded millions in taxes through a complex superyacht leasing scheme.


A joint investigation by the BBC and the Bureau of Investigative Journalism has unveiled that Roman Abramovich utilized a deceptive structure for his fleet of superyachts to evade millions in VAT taxes. Charters presented as commercial operations were instead linked directly to Abramovich, raising serious legal questions regarding tax evasion.


It was during Christmas 2011 that Russian oligarch Roman Abramovich was photographed on his luxury superyacht, Eclipse, despite records indicating it had been chartered out to a company based in the British Virgin Islands. This discrepancy is part of an extensive investigation revealing a decade-long operation to mislead tax authorities by presenting Abramovich's fleet of yachts as a legitimate commercial leasing endeavor.

The inquiry by the BBC and the Bureau of Investigative Journalism indicates that this scheme enabled Abramovich to dodge millions of euros in VAT taxes. Italian taxation expert, Professor Tommaso Di Tanno, characterized these practices as tax evasion, branding the actions as criminal. Abramovich's attorneys assert that he has always adhered to expert tax guidance and acted within legal bounds, claiming he divides his time between Istanbul, Tel Aviv, and Sochi since being sanctioned by the UK in March 2022 for his ties to Vladimir Putin's regime.

The investigation highlights Abramovich's ownership of five luxury yachts throughout the 2000s that were incorporated into this tax-evading scheme. Among these luxurious vessels is Pelorus, a 115-meter yacht, and Eclipse, which at 162.5 meters, was once the largest private yacht globally, valued at approximately $700 million. The revelations stem from over 400,000 files and 72,000 emails that were leaked from MeritServus, a Cypriot corporate service provider.

These documents portray how companies were created to hire the yachts from Abramovich’s businesses in a convoluted structure intended to appear independent, thus obscuring the actual control he exerted. A 2005 memorandum from Jonathan Holloway, then a director of Blue Ocean Yacht Management—a key player in the scheme—laid bare the intention to evade tax liabilities on yacht purchases and related expenses.

Despite the façade of a legitimate leasing operation, business records reveal that Blue Ocean's financials were manipulated to maintain an illusion of minimal profitability, thus avoiding corporation tax liabilities. There were instances of backdated charter agreements aimed specifically at acquiring duty-free fuel, prompting further questions about the genuine commercial nature of the operations.

However, the scheme encountered legal challenges. Italian authorities scrutinized Abramovich’s captains for allegations concerning unpaid excise duties. Ultimately, legal responses from Abramovich’s representatives proved effective, and investigations were dropped amidst claims of commercial legitimacy.

As allegations of improper tax practices swirl, the inquiry into Abramovich's yacht management operations also touches on broader issues regarding Russian oligarchs and their financial machinations. Cyprus has pursued unpaid VAT claims against Blue Ocean, leading to the company’s dissolution amid ongoing investigations.

The Cyprus Confidential initiative, a collaboration of investigative journalists, continues delving into the offshore financial activities linked to Abramovich and other associates of Putin's regime, highlighting the complexity and perceived illegitimacy of such tax schemes.

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