A group of MPs has called on HM Revenue & Customs (HMRC) to investigate sanctioned Russian oligarch Roman Abramovich over potential tax liabilities of up to £1 billion.
In a letter to HMRC, Labour MP Joe Powell, who leads a parliamentary group on fair taxation, referenced BBC reports questioning whether tax should have been paid on Abramovich’s offshore investments. The letter emphasized the need for a "proper investigation" into the matter.
HMRC responded by stating it was "committed to ensuring everyone pays the right tax under the law, regardless of wealth or status."
Offshore investments and UK tax liability
Leaked documents reveal that Abramovich’s investments, valued at $6 billion (£4.7 billion), were funneled through companies registered in the British Virgin Islands (BVI). However, evidence suggests these investments were managed from the UK, which could mean they were liable for UK taxation.
The BBC and the Bureau of Investigative Journalism (TBIJ) have spent over a year analyzing thousands of leaked files and emails from a Cyprus-based firm that handled Abramovich’s financial empire. The investigation, conducted in partnership with media outlets including The Guardian, is part of the International Consortium of Investigative Journalists' (ICIJ) Cyprus Confidential project.
Some of the funds used to support Chelsea FC during Abramovich’s ownership have been traced back to the companies involved in the alleged tax avoidance scheme, according to findings from the BBC and its partners.
Call for action
In his letter, Powell argued that the findings raise "serious questions about Mr. Abramovich’s potential tax liabilities" and urged HMRC to investigate. If tax is found to be owed, he insisted that the government must "reclaim any funds potentially owed by Roman Abramovich to UK tax authorities."
"Given the scale of the sums involved, ensuring that any unpaid taxes are recovered is a matter of public interest—particularly at a time when funds are urgently needed for public services and to manage the national debt," the letter added.
HMRC has reiterated its commitment to leading international efforts to enhance tax transparency.
The role of Eugene Shvidler
While offshore companies can legally avoid UK taxes if they are managed and controlled outside the UK, leaked documents suggest otherwise in this case. The BBC's investigation found that key strategic decisions for the BVI companies were allegedly made in the UK by Eugene Shvidler, a close associate of Abramovich.
Between 2004 and 2008, Shvidler—who became a British citizen in 2010—was granted sweeping control over the BVI companies via "general power of attorney" documents. Photo by Marina Lystseva, Wikimedia commons.