The island where Roman Abramovich is suspected of holding $7 billion in assets has reportedly opened an investigation into his fortune

  • The island of Jersey has launched an investigation into the offshore wealth of Roman Abramovich, The WSJ reported Tuesday.

  • In April, Jersey frozen $7 billion in assets linked to the Russian oligarch following British sanctions.

  • The British Isle, located off the coast of France, has no capital gains or inheritance tax.

Jersey, the largest of the UK’s Channel Islands, has opened an investigation into Roman Abramovich’s offshore wealth, according to a tuesday report from the Wall Street Journal.

The probe will investigate potential sanctions evasion and exactly how the billionaire acquired oil company Sibneft after the collapse of the Soviet Union, people familiar with the matter said.

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The deal, in which Abramovich bought Sibneft from the Russian government for $250 million and sold it ten years later for $13 billion, was called “fraudulent” by Russia’s former prosecutor general. The oligarch is currently worth $12.6 billionaccording to the Bloomberg Billionaire Index.

A Jersey government spokesman declined to comment or confirm reports of an investigation.

The Royal Court of Jersey frozen more than $7 billion in assets linked to the Russian oligarch in April, about a month after the UK sanctioned Abramovich. Authorities executed search warrants at locations on the island suspected of being linked to Abramovich’s business activities, according to a statement released last month.

Although not officially part of the UK, the Overseas Territory must legally adhere to UK sanctions. Jersey has no capital gains or inheritance tax, making it a popular destination for the super-rich – and their offshore bank accounts.

In 2019, the advocacy group Tax Justice Network class Jersey as one of the “worst” tax havens in the world, as reported by the BBC. The government pushed back on the credibility of the ranking and said the state fully complies with international standards. As of February 2022, the EU does not classify Jersey as a ‘non-cooperative jurisdiction for tax purposes’.

Read the original article at Business Intern

David C. Barham