Government authorities in Cyprus have indicted Roman Abramovich’s former yacht managers on charges related to tax evasion. They claim the actions directly benefitted Abramovich, helping him avoid sanctions. Officials are seeking €25 million (about $29 million) in overdue taxes.
Cyprus’ tax commissioner filed a criminal indictment on August 22 against the prior directors of Blue Ocean Yacht Management. Although the commissioner has not disclosed the names of the directors, Blue Ocean Yacht Management was in Cyprus. It existed from the early 2000s through July 2024, when it dissolved. Notably, the company already had spent 12 years fighting an order from Cyprus’ tax authority. The government agency indicated the company owed €14 million ($16 million) in taxes. In June of this year, a court ordered reinstating Blue Ocean Yacht Management as a registered company, so that the legal pursuit could continue. The new €25-million total includes interest on the original sum.
The order resulted from the release of Cyprus Confidential. This was a journalistic investigation into Cyprus-based financial services that facilitated sanctions avoidance. According to published reports by some of the journalists, each of Abramovich’s yachts, like Eclipse (above), belonged to separate companies. Those companies in turn belonged to a Cypriot trust, where Abramovich was the beneficiary. From 2005 to 2012, each company leased its yacht to Blue Ocean Yacht Management. Then, the yacht managers allegedly chartered the yachts to companies belonging to Abramovich.
Normally, when yachts operate in certain European waters, they pay VAT on fuel and other expenses. Exemptions, however, apply when yachts are operating for commercial, a.k.a. charter, purposes. But, it’s illegal for an owner to charter a yacht to him- or herself in multiple countries.
Previously, Abramovich’s lawyers have said he complied with professional tax advice. They further have said he neither knew of nor was responsible for any claimed tax evasion. An email we sent to Blue Ocean Yacht Management came back as undeliverable.
The trial for the yacht managers is set to begin October 9 in Limassol District Court.