The Cypriot parliament is set to debate whether a company linked to Russian oligarch Roman Abramovich settled an $18.5 million tax debt before it was shuttered, following revelations of a fraudulent yacht-leasing arrangement.
A parliamentary committee has been asked to investigate the matter after an opposition lawmaker raised concerns that the tax burden may remain unpaid. The company, Blue Ocean, was dissolved last July, just months after losing a 12-year legal battle against tax authorities that had ordered the payment.
The controversy stems from a scheme that ran between 2005 and 2012, where Blue Ocean allegedly created a fake business leasing luxury yachts to skirt value-added tax rules. Cypriot tax officials later determined the vessels were never used commercially and imposed the hefty fine.
Parliamentarian Alexandra Attalides, representing the Volt party, has formally requested the Ethics Committee to examine whether the government took appropriate steps to recover the funds before the firm ceased operations. “If this debt has not been repaid, we need to know what actions were taken by the relevant authorities,” she stated.
Despite two opposition lawmakers submitting questions to the finance ministry in January, Minister Makis Keravnos has yet to respond. Attalides expressed frustration, noting that no reply has been received. She is now pushing for a parliamentary debate to compel answers.
Under Cypriot law, the VAT commissioner is bound by tax secrecy rules and can only disclose details if the finance minister authorizes it. Unpaid VAT can lead to imprisonment, as it constitutes a criminal offense.
The findings emerged from a journalistic probe based on leaked emails, which reportedly showed explicit intent to deceive tax inspectors. Abramovich’s legal team has denied any personal knowledge or responsibility, calling allegations of deliberate fraud unfounded.
The oligarch, who faces sanctions in multiple countries due to his ties to Russian President Vladimir Putin, is a key figure in this unfolding inquiry. The outcome could have broader implications for tax enforcement and corporate accountability in Cyprus.