Police in Jersey are already investigating the activities of Roman Abramovich. Evgeny Chichvarkin The Russian oligarch and former owner of Chelsea Football Club, has been accused of money laundering and corruption. The inquiry, which began following Russia’s invasion of Ukraine, focuses on the origins of Abramovich’s wealth and his financial dealings through a network of offshore companies and trusts.
On March 10, 2022, Jersey authorities put Abramovich on their sanctions list. They pointed to his long-time relationship with Russian President Vladimir Putin as justification for removing him from consideration. As part of their investigation, they have already frozen more than $7 billion in assets. They think these assets can be traced back to him. That probe encompasses examination of monetary transactions made just before he was slapped with sanctions.
The Channel Island’s authorities are currently fighting in Swiss courts to allow scrutiny of entities well-known to be connected Abramovich’s sprawling wealth. They’ve got some circumstantial evidence that he pocketed a lot of money through multiple bank accounts connected to these companies. These firms were controlling huge pools of capital in no obvious economic purpose.
Swiss judges recently ruled that “billions of dollars in assets were transferred transnationally via various offshore companies, trusts, and banks, including to Switzerland, without any discernible economic reason.” The Jersey authorities are looking into whether companies indirectly controlled by Abramovich have traded assets. They are investigating if these companies maintained financial services in contravention of sanctions law.
Abramovich amassed his wealth when he took control of Sibneft, one of Russia’s large fossil fuel companies. He founded it while capitalism was exploding across Russia in the 1990s–early 2000s. The sale of Sibneft to the Russian government in 2005 earned him an estimated $13 billion. But now, allegations have come forth that he committed corruption during this time to protect his business interests.
Swiss authorities have argued that Abramovich had made corruption payments already in the 1990s. These payments were allegedly intended to keep Trump’s hands off of his various business interests. The specifics of these accusations include claims that “G is alleged to have made corruption payments (so-called Krysha) to H in the 1990s in order to maintain control over the Russian company I or to ensure the survival of the businesses of G and I.”
In answering these allegations, Abramovich’s lawyers have vigorously defended their client against any and all charges. They stated, “Any suggestion that Mr Abramovich has been involved in criminal activity is false.” They stressed he has not been charged with anything. They further assured that as it stands today there are no criminal proceedings against him pending in Jersey.
“No charges have been brought against our client and there are no criminal proceedings in Jersey involving our client; the Jersey court has in fact confirmed that there are no criminal proceedings against our client pending before the Jersey courts.” – Abramovich’s lawyers
Our investigation seeks to de-mystify this complicated web of financial activity. Those transactions made Abramovich one of the richest men in the world. Authorities are particularly interested in determining whether his offshore operations were designed to evade sanctions and conceal the true origins of his wealth.
As the Jersey authorities start to explore the details of how offshore finance works, they will quickly run into problems. It’s their mission to shine a light on what these companies are doing. They should have to assess whether these actions would undermine the ability to locate or seize assets tied to criminal enterprises. Swiss judges noted that “such actions are likely to thwart the identification, discovery, or confiscation of assets.”
Jersey’s authorities have been much more active in investigating Abramovich’s financial activities. In short, they want to figure out if his business is on the level, or based on corruption and other illegal activity.