Cyprus revives company to reclaim €14m in unpaid taxes from Abramovich
- Cypriot authorities will revive Blue Ocean Yacht Management to reclaim €14 million in unpaid VAT.
- The company was wound up last year despite owing significant tax debts, prompting court involvement.
- This move illustrates the challenges in pursuing high-profile tax debts, especially concerning oligarchs.
In Cyprus, the authorities are taking significant steps to pursue Roman Abramovich for €14 million in unpaid taxes related to his fleet of superyachts. A recent court order, issued on a Monday in 2025, has revived Blue Ocean Yacht Management—the company linked to a yacht-hire scam. This company, which was wound up last year despite its substantial VAT debts, is being reinstated along with its officers, allowing officials to reclaim the taxes owed. Previously, officials had indicated that such recovery efforts would be impossible, spurring criticism in the Cypriot parliament. The issue dates back to earlier investigations into Abramovich’s tax affairs. The Bureau of Investigative Journalism, in collaboration with media outlets like the BBC and the Guardian, uncovered that the oligarch may owe up to £1 billion in UK taxes as well. Specific to the VAT case in Cyprus, Blue Ocean Yacht Management first came under scrutiny in 2012, with a decade-long legal battle culminating in a ruling by the supreme court in March 2024 confirming the owed VAT. However, by that time, Blue Ocean had ceased operations, complicating enforcement measures. Cyprus tax commissioner Sotiris Markides acknowledged that procedural difficulties prevented accountability for Blue Ocean and its directors. Labour MP Joe Powell highlighted the effectiveness of the investigations that prompted the court’s order, while questioning why similar actions have not been seen from UK tax authorities regarding Abramovich’s alleged debts to HMRC. Despite the legal scrutiny, Abramovich has claimed compliance with tax laws and denies any deceit intended to evade taxes. The renewed efforts in Cyprus to reclaim these funds reflect a growing governmental concern about high-profile tax evasion cases and underscore the challenges in holding wealthy individuals accountable. With public sentiment shifting and increased pressure on tax authorities, the outcome of this revived company and enforcement of the court’s decision may set important precedents regarding tax compliance and investigation in the case of oligarchs and other affluent individuals.