Secrets Of Cyprus: Abramovich’s Secret $40 Million Deal With Putin’s ‘Wallets’ Uncovered
- 15.11.2023, 12:56
This became known due to a leak of documents.
Russian oligarch Roman Abramovich and the so-called “wallets” of dictator Vladimir Putin conducted a secret million-dollar deal. This became known due to the leak of secret documents.
The BBC reports this.
Abramovich, who is under UK and EU sanctions, has denied financial ties to the Russian dictator. But declassified documents from Cyprus have provided new evidence linking them to a secret $40 million deal made in 2010.
The essence of the agreement
Until this moment, the deal was completely secret. This was made possible due to the company's sophisticated network in Cyprus and the British Virgin Islands.
It is known that two companies Finoto Holdings and Grosora Holdings (created in 2003) belong to the Sara Trust Settlement, the ultimate owner of which is Abramovich.
In September 2003, the two firms each acquired a 12.5% stake in the Russian advertising giant Video International for $130,000. The price was significantly reduced, since at the time of the transaction the company was the leader in the television advertising market in the Russian Federation.
For the next seven years, Abramovich owned part of Video International. The company reported turnover of more than $2 billion. During this period, dividends of $30 million were paid to Finoto and Grosora.
In 2010, Video International's revenue was $3 billion. But Abramovich's companies sold their shares to other firms for $20 million, far below market value. The shares were purchased by companies owned by Sergei Roldugin and Alexander Plekhov. They are called Putin's “wallets”.
What is known about them
Sergei Roldugin is a longtime friend of Putin. He is a cellist and artistic director of the House of Music in St. Petersburg. It is known that Roldugin introduced Putin to his first wife Lyudmila Shkrebneva. Moreover, Roldugin became the godfather of their eldest daughter.
Alexander Plekhov is another close friend of Putin from St. Petersburg. He is a former biochemist, but has now become a businessman.
Roldugin and Plekhov are accused of being Putin’s “wallets,” that is, secretly owning money and assets on his behalf. Moreover, sanctions were imposed against Plekhov and Roldugin in Britain, the EU and the USA. They are called “custodians of Putin's offshore wealth”.
The role of Cyprus
It is worth noting that among the Russian elite, Cyprus is popular as a place to store money offshore. However, after Russia attacked Ukraine, Cyprus was under threat.
Cyprus is a member of the EU, which means that many people close to Putin who kept funds in Cypriot offshore companies were subject to sanctions. The sanctions showed that Cyprus cannot be used by Russian oligarchs to support Putin’s orders.
Journalists add that there are signs that Cyprus may be getting its affairs in order.
Abramovich and his role in the war against Ukraine
Roman Abramovich is considered an oligarch close to Putin, although he himself denies these claims. The UK and EU governments labeled Abramovich a pro-Kremlin oligarch and imposed sanctions against him in March 2022.
The Russian oligarch has owned the British football club Chelsea since 2003. After Russia invaded Ukraine, he was removed from his position as director due to sanctions and ties to dictator Putin.
Abramovich announced the sale of Chelsea in early March 2022 and noted that the withdrawn funds would go to the Ukraine relief fund. In May, a Russian oligarch sold the football club for $5.4 billion, but the funds have not yet been received by the fund.
Important to note, Abramovich became an unofficial mediator in peace negotiations between Russia and Ukraine at the beginning of the full-scale invasion. Then the negotiations took place in Turkey.