Cyprus Investigates Roman Abramovich's Finances Amid Frozen Chelsea Funds
Translated & summarized from Bizportal by baba
Cyprus police have opened a financial and tax investigation into Russian-Israeli businessman Roman Abramovich, focusing on his dealings between 2003 and 2006. The probe stems from the "Cyprus Confidential" leak, which alleged backdating of documents to facilitate tax evasion and conceal assets. Abramovich, who faces sanctions and asset freezes in multiple countries, previously denied wrongdoing. Meanwhile, approximately $3.3 billion from the sale of Chelsea remains frozen in the UK, with ongoing disputes over its allocation for humanitarian aid in Ukraine.
The story in 5 lines · by baba
- Cyprus police are investigating Roman Abramovich's financial and tax affairs from 2003-2006.
- The investigation is based on the "Cyprus Confidential" leak alleging backdated documents for tax evasion.
- Abramovich faces sanctions and asset freezes in the UK and EU following Russia's invasion of Ukraine.
- Around $3.3 billion from the Chelsea sale remains frozen in the UK.
- Disputes continue over the allocation of frozen Chelsea sale funds for Ukrainian humanitarian aid.
Cyprus police have launched an investigation into the financial and tax affairs of Russian-Israeli businessman Roman Abramovich, the former owner of Chelsea Football Club. Andreas Anastasiades, Assistant Head of the Anti-Crime Department of the Cyprus Police, revealed the probe during a parliamentary committee hearing in Nicosia. The investigation focuses on the years 2003 to 2006, with evidence collection underway and an estimated six-month duration. Anastasiades acknowledged that the passage of time will complicate the investigation and that police will consult relevant authorities to assess the available material.
The inquiry was initiated following an international media investigation based on the "Cyprus Confidential" document leak, which involved approximately 3.6 million documents from six Cypriot financial service firms and one Latvian company. The leaked documents, obtained by the International Consortium of Investigative Journalists (ICIJ), suggest that individuals working for Abramovich, including employees of Deloitte Cyprus, allegedly backdated documents. These documents pertained to his offshore corporate structures and billions in assets, and the investigation claims they facilitated tax savings and concealed asset ownership for his companies. Abramovich has previously denied any wrongdoing, stating he acted on professional advice. Deloitte Cyprus has maintained it operates in compliance with all relevant laws and that relevant materials are no longer available due to the time elapsed.
The period under scrutiny is significant, as Abramovich purchased Chelsea in 2003 for approximately £140 million and held a controlling stake in the oil company Sibneft during those years. In 2005, his holding company Milhouse Capital sold a 72.7% stake in Sibneft to Gazprom for about $13.1 billion. Cyprus was a favored destination for Russian capital during that era, with financial service providers managing a substantial portion of his business structure.
While the investigation is in its early stages with no indictments filed, the involvement of Cypriot police adds a new front for Abramovich, who faces sanctions, asset freezes, and legal proceedings in multiple countries. Following Russia's invasion of Ukraine in March 2022, Abramovich announced his intention to sell Chelsea, with proceeds to be donated to a charity for war victims. The UK subsequently imposed sanctions on him, citing his ties to Russian President Vladimir Putin and preferential treatment from the Russian government, including tax benefits and favorable deals. The European Union also joined in with its own sanctions.
The sale of Chelsea was completed in May 2022 to a consortium led by Todd Boehly and Clearlake Capital for approximately £4.25 billion ($5.7 billion). The UK government approved the deal on the condition that the proceeds remain frozen and used solely for humanitarian purposes in Ukraine, without benefiting Abramovich or any sanctioned individuals. The funds, totaling around £2.5 billion including accrued interest, are currently held in a frozen account. A dispute exists over the allocation of these funds, with the UK government insisting they go to Ukraine, while Abramovich seeks to aid war victims on both sides of the conflict and beyond. A UK Treasury license issued in December 2025 allowed 90 days for the funds to be donated to Ukraine, but the deadline passed in March without transfer, prompting the government to prepare for legal action.
Abramovich's connection to Cyprus and Israel is notable. Cyprus served as a major financial hub for Russian capital, with MeritServus, a financial services firm in Limassol, managing at least 14 trusts for Abramovich, linking him to approximately 261 companies and trusts across various jurisdictions. In Israel, he received citizenship in May 2018 and previously purchased the Versano Hotel in Tel Aviv. He also made significant donations to Israeli institutions, though Yad Vashem suspended a partnership with him after the UK imposed sanctions. Findings from the Cyprus investigation regarding alleged concealment of ownership or tax evasion could potentially weaken Abramovich's position in ongoing legal discussions, despite the age of the events and the potential unavailability of some evidence.