Abramovich Denies Tax Evasion Claims as BBC Uncovers Alleged Hidden Assets Worth Billions

Russian billionaire Roman Abramovich has rejected allegations of tax evasion and concealment of wealth following a BBC report alleging that documents were falsified to hide assets and help one of his companies evade taxes.

The former Chelsea owner’s legal representatives, Kobre & Kim, denied the allegations on Tuesday, stating that there was no evidence that Abramovich authorised or participated in the alleged misconduct.

“No evidence has been provided that Mr Abramovich knew of, authorised or directed the falsification or backdating of any document, and he denies that he evaded tax or concealed his fortune,” the law firm said.

“Mr Abramovich denies any wrongdoing. He was not involved in the day-to-day operation of the companies concerned,” the lawyers added in a statement to AFP.

The denial followed an investigation published by the BBC on Monday, which alleged that assets worth $672 million, including superyachts, private jets and mansions, disappeared from the accounts of companies associated with Abramovich. The accounts were reportedly signed off by Deloitte in Cyprus in 2006.

The broadcaster’s Panorama programme also alleged that associates of the billionaire concealed the fortunes of two other companies from Cypriot authorities. Their reported values stood at nearly $2 billion and more than $10 billion, respectively.

The BBC investigation claimed that the alleged concealment involved backdated documents linked to MeritServus, a firm that is now defunct and was owned by Deloitte until 2005.

Deloitte is recognised as one of the world’s four biggest accounting firms, collectively known as the “Big Four”.

According to the BBC, the findings were based on a leak of documents spanning 1995 to 2022.

Deloitte’s Cyprus branch responded to AFP by saying it “acts in compliance with applicable laws”. The firm, however, declined to comment further on the allegations.

The latest claims come amid previous reports concerning Abramovich’s financial affairs. In 2023, The Guardian reported that he had attempted to shield his wealth by transferring several billion dollars to his children shortly before sanctions were imposed on him following Russia’s invasion of Ukraine.

Britain sanctioned Abramovich because of his close ties to the Kremlin and subsequently froze his assets.

The measures forced him to sell Chelsea Football Club, which he had owned since 2003. The club was purchased in May 2022 by a new ownership consortium led by American businessman Todd Boehly.

The sale generated approximately £2.5 billion ($3.3 billion), but the proceeds remain frozen in a British bank account.

While the UK government wants the money directed towards humanitarian efforts in Ukraine, Abramovich has insisted that it should be made available to all victims of the conflict, including people in Russia.

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