KNEW: Russian Oligarchs Hid Assets in Complex Financial Networks with Cyprus Firm
A recent investigation has uncovered a complex web of financial transactions involving sanctioned Russian oligarchs, a Cyprus-based company, and Western businesses. The investigation reveals that MeritServus, a firm owned by Ioannides, knowingly assisted Russian oligarchs to hide their assets in intricate financial networks.
Complex Financial Networks
The International Consortium of Investigative Journalists (ICIJ) led the investigation, which found that MeritServus had extensive relationships with several high-profile individuals and companies. The firm handled the day-to-day business of over 100 companies and trusts owned or controlled by Russian oligarchs, including:
- Konstantin Malofeyev, a Kremlin propagandist
- Roman Abramovich, a billionaire and longtime friend of Vladimir Putin
Services Provided
MeritServus provided services to Abramovich’s companies registered in secrecy jurisdictions such as:
- Isle of Man
- Jersey
- British Virgin Islands
The company also helped administer 14 Cyprus-registered trusts owned or controlled by Abramovich.
Network of Shell Companies
The investigation uncovered a network of shell companies linked to now-sanctioned Russian oligarchs, including:
- Mordashov, who secretly funded a book written by German journalist Hubert Seipel about Vladimir Putin
- The book deal was worth $700,000 and was facilitated by Cypcodirect and PwC Cyprus
Propaganda Machine Abroad
The investigation highlights the breadth and sophistication of Russia’s propaganda machine abroad, which has infiltrated Western media and publishing industries. It raises questions about the role of Western companies in facilitating Russian oligarchs’ attempts to launder money and evade sanctions.
Collaborative Journalism
ICIJ’s investigation is a testament to the power of collaborative journalism and the importance of holding those who wield significant financial and political influence accountable for their actions.
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