Jersey: How a Tax Haven Protected Roman Abramovich's Billions from Sanctions
In recent years, Roman Abramovich, a Russian billionaire and former Chelsea football club owner, has found himself on the receiving end of international sanctions. However, thanks to Jersey, a tax haven in the Channel Islands, his vast fortune was protected from these measures.
A two-year legal battle between Jersey and Abramovich has finally come to an end, with 15 previously undisclosed judgments being released by the Jersey royal courts. These documents reveal that in 2016 and 2017, Abramovich and four of his closest associates were given safe harbour by Jersey under a special scheme for ultra-high net worth individuals.
Abramovich's application was approved in September 2017, with the company he set up to manage his wealth, which advised on philanthropic activities, aircraft purchases, yacht sales, and investments, being granted a license to operate in Jersey. Transfers of assets from his offshore network to Jersey took place in 2017, and again in 2021.
The British government was involved in the process, with London being extensively consulted on what was considered a politically sensitive matter involving a high-profile individual known for his close ties to Vladimir Putin's regime. Despite heightened sensitivity around Kremlin-linked figures after Russia's annexation of Crimea in 2014, there were no objections from UK officials.
A report prepared by Barry Faudemer, the former head of enforcement at the Jersey Financial Services Commission, warned that Abramovich's close association with Putin raised a reputational risk to Jersey and that he could use a Jersey-registered company "to launder the proceeds of corruption on behalf of third parties including Putin."
However, Faudemer concluded that identifying evidence sufficient to support a refusal to grant a license was likely to be problematic. A back channel was opened between St Helier and London, with UK officials running checks on Abramovich and his associates.
Jersey's ministers were keen to make it work, but they wanted to proceed with care. Robert MacRae, then Jersey's attorney general, approached a contact in the directorate of national security at the UK's Foreign and Commonwealth Office, as it was then known.
After the Salisbury poisonings, all the checks were redone, again via the FCO. There are accounts of four face-to-face meetings between UK and Jersey officials, including one between Faudermer and the UK regulator the Financial Conduct Authority (FCA).
The decision to allow Abramovich to move his wealth to Jersey was not taken lightly, with concerns raised about the reputational risk of doing so. However, a spokesperson for Jersey's attorney general welcomed the privy council's decision, adding that the investigation by the Economic Crime and Confiscation Unit in the Law Officers' Department in relation to Mr Abramovich and others remains live.
In a statement, Abramovich's lawyers said that no charges have been brought against him since the commencement of the Jersey investigation over three years ago, and there are no criminal proceedings in the jurisdiction involving him. They stressed that they had not been required to rule on whether there had been any corruption or admission of corruption by Abramovich regarding his dealings at Sibneft, and that they had not reached any conclusions on this matter.
Jersey's role as a tax haven has once again come under scrutiny, with questions raised about the island's secrecy laws and its relationship with the UK government. The decision to allow Abramovich to move his wealth to Jersey raises concerns about the island's ability to maintain its financial secrecy while also complying with international sanctions.
In recent years, Roman Abramovich, a Russian billionaire and former Chelsea football club owner, has found himself on the receiving end of international sanctions. However, thanks to Jersey, a tax haven in the Channel Islands, his vast fortune was protected from these measures.
A two-year legal battle between Jersey and Abramovich has finally come to an end, with 15 previously undisclosed judgments being released by the Jersey royal courts. These documents reveal that in 2016 and 2017, Abramovich and four of his closest associates were given safe harbour by Jersey under a special scheme for ultra-high net worth individuals.
Abramovich's application was approved in September 2017, with the company he set up to manage his wealth, which advised on philanthropic activities, aircraft purchases, yacht sales, and investments, being granted a license to operate in Jersey. Transfers of assets from his offshore network to Jersey took place in 2017, and again in 2021.
The British government was involved in the process, with London being extensively consulted on what was considered a politically sensitive matter involving a high-profile individual known for his close ties to Vladimir Putin's regime. Despite heightened sensitivity around Kremlin-linked figures after Russia's annexation of Crimea in 2014, there were no objections from UK officials.
A report prepared by Barry Faudemer, the former head of enforcement at the Jersey Financial Services Commission, warned that Abramovich's close association with Putin raised a reputational risk to Jersey and that he could use a Jersey-registered company "to launder the proceeds of corruption on behalf of third parties including Putin."
However, Faudemer concluded that identifying evidence sufficient to support a refusal to grant a license was likely to be problematic. A back channel was opened between St Helier and London, with UK officials running checks on Abramovich and his associates.
Jersey's ministers were keen to make it work, but they wanted to proceed with care. Robert MacRae, then Jersey's attorney general, approached a contact in the directorate of national security at the UK's Foreign and Commonwealth Office, as it was then known.
After the Salisbury poisonings, all the checks were redone, again via the FCO. There are accounts of four face-to-face meetings between UK and Jersey officials, including one between Faudermer and the UK regulator the Financial Conduct Authority (FCA).
The decision to allow Abramovich to move his wealth to Jersey was not taken lightly, with concerns raised about the reputational risk of doing so. However, a spokesperson for Jersey's attorney general welcomed the privy council's decision, adding that the investigation by the Economic Crime and Confiscation Unit in the Law Officers' Department in relation to Mr Abramovich and others remains live.
In a statement, Abramovich's lawyers said that no charges have been brought against him since the commencement of the Jersey investigation over three years ago, and there are no criminal proceedings in the jurisdiction involving him. They stressed that they had not been required to rule on whether there had been any corruption or admission of corruption by Abramovich regarding his dealings at Sibneft, and that they had not reached any conclusions on this matter.
Jersey's role as a tax haven has once again come under scrutiny, with questions raised about the island's secrecy laws and its relationship with the UK government. The decision to allow Abramovich to move his wealth to Jersey raises concerns about the island's ability to maintain its financial secrecy while also complying with international sanctions.
Jersey is supposed to be a financial hub or whatever, but now I'm not so sure...
and now there's questions raised about jersey's role as a tax haven. it seems like jersey was more concerned with keeping abramovich happy than doing the right thing, especially considering the reputational risk of being associated with him. and what's even crazier is that british officials were involved in the process and didn't raise any objections 
. this just goes to show how complex and often murky the world of finance can be 
this is getting out of hand... i mean, what's next? russian oligarchs just gonna waltz into jersey and be like "oh, can't catch me"? 
i get it, abramovich has ties to putin and all that jazz, but come on, jersey's gotta do better than this... a two-year legal battle and nothin' comes of it? and what's with the british government just rollin' over on this one? 
. So, like, he's been able to protect his billions from sanctions because of Jersey, right? #TaxHavenProblems #RichPeopleRiddles. It's crazy that the UK gov was involved in this whole process and didn't raise any red flags 
. And now we're wondering if Jersey is still keeping it real with its secrecy laws 
I get it, the UK gov was all about being careful not to rock the boat, especially since there were concerns about Putin and corruption. But like, 15 previously undisclosed judgments? That's a lot of secrets being kept 
And what really gets me is that Abramovich's lawyers are saying he hasn't been charged with anything since the investigation started... isn't that suspicious? 
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What do you think?
It's like he played the whole game of cat and mouse with the UK government to get his billions safe 
I'm so impressed that Roman Abramovich was able to protect his billions from sanctions! 
. It just goes to show that money and power can get you out of some pretty sticky situations 
and the UK gov is all like "sure thing, buddy, we've got your back" 