Former directors of Abramovich-linked company face Cyprus trial over €25 million VAT case

Limassol, Cyprus. A trial involving two former directors of Blue Ocean Yacht Management Ltd, a Cypriot company linked to Russian oligarch Roman Abramovich, is scheduled for November 26 at Limassol district court. The case concerns unpaid VAT totalling €25 million.

Allegations over yacht management

Blue Ocean Yacht Management Ltd handled management of Abramovich’s superyachts, whose combined value was approximately €1.2 billion. Cyprus’s tax authorities allege that fictitious transactions were used to evade VAT liabilities.

Abramovich faces no charges in Cyprus. The indictment also does not identify those alleged to have devised and coordinated the scheme.

According to reporting by the Organised Crime and Corruption Reporting Project (OCCRP), Blue Ocean faces accusations of non-payment of tax and interest exceeding €26 million.

Former directors and corporate services provider

OCCRP identified Maria Damianou, Ioanna Ilia and Neil Wade as former directors facing tax-related charges, alongside Meritservus Secretaries Limited. It also reported that an indictment had not been served on a third former director because his location was unknown.

The two women worked for Meritservus, a corporate services provider based in Limassol that allegedly administered Cypriot companies for Abramovich’s benefit. They reportedly maintain that their roles were those of ordinary employees acting on instructions from their superiors.

During a previous hearing, their lawyer sought access to evidence without commenting on the charges. Meritservus’s director has declined to comment.

Directors’ legal responsibilities

Cypriot company law assigns directors responsibility for company management, accounting records, tax returns and the payment of taxes owed.

Under Article 46 of the VAT Law, penalties can include a fine reaching three times the unpaid VAT, imprisonment for a maximum of three years, or both.