Criminal case filed against Cypriot directors over Roman Abramovich's unpaid VAT

The Cypriot Tax Department has initiated a criminal case against two local directors of the company Blue Ocean Yacht Management Ltd for unpaid value-added tax (VAT) totaling €25 million. The case concerns the management of luxury yachts owned by Russian oligarch Roman Abramovich, with the vessels’ combined value estimated at approximately €1.2 billion. The company had previously been removed from the corporate registry in 2024 but was reinstated a year later following a court order, sparked by parliamentary inquiries initiated by former MP Alexandra Attalidou.

Investigations suggest that a complex leasing system was utilized to bypass VAT obligations in the Republic of Cyprus through alleged fictitious transactions. While the tax authorities have targeted the two directors, reports indicate that these individuals were employees of another entity, while the primary architects behind the scheme remain unidentified and have largely obscured their tracks. Consequently, there is skepticism regarding the prospects of successfully recovering the €25 million debt.

The two defendants are scheduled to appear before the Limassol District Court on November 26, 2026, for the commencement of the hearing. This development follows recent international disclosures regarding the movement of billions of dollars in assets belonging to Abramovich through Cypriot firms, renewing scrutiny over regulatory oversight and accountability mechanisms in Cyprus.