Safe haven to sanctions: how Jersey sheltered Roman Abramovich's billions

Jersey's Tax Haven Shield: How Roman Abramovich Got Away with Billions

In a shocking revelation, the Channel Island of Jersey has released details of its two-year battle with Russian billionaire Roman Abramovich over the oligarch's billions in tax haven secrecy. The judgments, which were kept under wraps until now, reveal how Abramovich and four associates took advantage of Jersey's low-tax regime to shield their wealth from prying eyes.

The story begins in 2016, when Abramovich approached Jersey about residency through an associate named XB. Despite concerns raised by former head of enforcement Barry Faudemer that granting residency could pose a "reputational risk" to the island due to Abramovich's close ties to Vladimir Putin's regime, Jersey officials went ahead with the application process.

Faudemer had warned that granting residency would allow Abramovich to use the island as a base for laundering money and potentially harming the global economy. However, he also noted that Abramovich already had extensive business interests in the UK and US, and that identifying evidence sufficient to prevent the license was likely to be problematic.

Despite Faudemer's reservations, Jersey officials consulted extensively with their UK counterparts over several years, including running checks on Abramovich and his associates through the directorate of national security at the Foreign and Commonwealth Office. However, it appears that no significant concerns or adverse traces were found.

In 2017, Abramovich was granted residency under a special scheme for ultra-high net worth individuals, and he also moved companies controlling the bulk of his fortune to Jersey in 2017 and again in 2021, months before Russia's full-scale invasion on Ukraine. The oligarch had already secured Israeli citizenship in 2018.

Jersey's government was keen to make a deal with Abramovich, offering him significant financial benefits in return for taking up residence on the island. However, it appears that no political objections were raised from London, and officials at the time assured that there was insufficient evidence to prevent the application from proceeding.

The judgment reveals that Abramovich never took up residence in Jersey but instead secured Israeli citizenship. Despite his absence, Abramovich's associates still managed to set up a family office on the island, which advised on philanthropic activities and investments.

In recent years, Russia's annexation of Crimea and the Salisbury poisonings had heightened sensitivity around Kremlin-linked figures, but it appears that Abramovich was able to continue moving his wealth into Jersey with relative ease. It wasn't until Russia's assault on Kyiv that the tide turned against him, when Jersey authorities froze $7 billion of assets suspected of having been connected to him and began a criminal investigation.

The ongoing investigation has raised questions about the extent to which Jersey officials collaborated with their UK counterparts to shield Abramovich from scrutiny. The former head of enforcement Faudemer had warned about the risks of allowing Abramovich to take up residence in Jersey, but his concerns appear to have been ignored.

Abramovich's lawyers claim that there is no evidence of corruption and that he denies allegations of wrongdoing regarding his dealings at Sibneft. However, the investigation by the Economic Crime and Confiscation Unit remains live, and it remains to be seen whether Abramovich will ultimately face charges for allegedly using Jersey as a base for laundering money.

The judgment has sparked concerns about the extent to which Jersey officials have allowed wealthy individuals to use their jurisdiction to shield their assets from scrutiny. The island's reputation as a tax haven is being scrutinized by governments around the world, and the case of Roman Abramovich serves as a reminder of the risks involved in allowing such secrecy to persist.

[Image of a person with their money bag hiding behind a tree ]

Jersey's whole "we're not doing anything shady" act just fell apart [GIF of a building on fire]

Why would they even bother with all those checks? [Meme of a cat wearing a cape, labeled "Kremlin-linked figure"]

u all need 2 remind ourselves dat even 4 the rich & famous, the law applies jersey's tax haven shield just revealed how roman abramovich got away with BILLIONS by taking advantage of their low-tax regime its like he played a game of hide-and-seek wit' the authorities for yrs meanwhile, former head of enforcement barry faudemer warned about the risks of allowing abramovich 2 take up residence in jersey but his concerns were ignored now, the island's reputation is at stake

This is just great Jersey needs to get its act together ASAP. I mean who lets some super rich Russian oligarch basically set up shop in their tax haven without doing due diligence? The whole thing stinks. Abramovich's associates setting up a family office on the island after he never even bothered to move there is just laughable . And what's with all these "financial benefits" and "collaboration" deals? Jersey is basically being used as a money laundering operation and they're just going along for the ride . It's disgusting that Abramovich was able to secure Israeli citizenship in 2018 and then just kept on moving his wealth into Jersey without any problem. I mean, what does he have to hide? Apparently nothing, because Jersey officials were too scared to look closer . This whole thing is a total failure of governance and accountability.

I don't know if I'm right or wrong about this but I think it's kinda weird that Jersey just let Roman Abramovich get away with all that money laundering stuff . Like, I guess they thought he was too rich and powerful to bother with, right? But what really gets me is how they kept it all under wraps for two whole years . That seems super shady if you ask me .

On the other hand, maybe Jersey officials were just trying to do their job and didn't know any better . Maybe they genuinely thought Abramovich was a good guy or something . But now that we know, it's clear that they dropped the ball big time ️.

Ugh, I'm so confused about this one . Can anyone explain to me why I'm both right and wrong at the same time?

I mean come on , this is just wild! So Roman Abramovich gets away with billions because Jersey's tax haven secrecy is so lax . I'm not buying it though... I think this is a major red flag for the whole financial system. If the UK and other governments aren't even doing due diligence to stop him from hiding his cash, that's just disturbing .

I love how Abramovich has a team of lawyers saying there's no evidence of corruption, but at the same time, they're not releasing any concrete proof either . It's like they're trying to spin this as "he didn't do anything wrong" while he's still got his fingers in all these shady investments .

Jersey needs to get its act together and start prioritizing transparency over tax havens . We can't just let wealthy individuals use their wealth to manipulate the system for their own gain. It's time for some real accountability here

I gotta say, this whole thing with Roman Abramovich and Jersey's tax haven shield is just wild ... I mean, who knew that one of the richest men in the world could basically buy his way into a secretive island nation and get away with it? It's like he had a magic button that let him avoid all scrutiny and accountability. And what's even crazier is that Jersey officials were essentially colluding with Abramovich to make it happen, despite knowing some of his sketchy connections to Putin's regime ... I'm not saying they're bad people or anything, but come on, you'd think there would be some kind of checks and balances in place to prevent this kinda thing from happening. Anyway, it's a pretty damning judgment, and I'm glad that Jersey is finally getting called out for its role in all this ... still not sure what the takeaway is here, though - has anyone else noticed how weirdly convenient it is when super rich people just happen to move their wealth into these secretive tax havens?

I'm totally bummed to see that rich people like Roman Abramovich can just waltz into Jersey and avoid paying their fair share of tax . I mean, come on, if you've got billions stashed away, surely it's only fair to contribute a bit back to the community? But nope, it seems like the Channel Island just rolled out the red carpet for him and his mates .

It's like, we all know about the benefits of tax havens, but when it comes down to it, shouldn't there be some accountability for those who are using them to evade their responsibilities? I guess that's what worries me – if Abramovich can get away with it once, who's going to stop others from following in his footsteps?

omg this is insane! roman abramovich just got away with billions!!! i mean, how does one even get away with tax evasion that big? it's like jersey was just like "oh hey roman, come on down" and Abramovich was all like "thank you, jersey" and then he just sets up a company or two and voila! billions in the bag meanwhile, faudemer is over here like "guys, we should've been more careful" anyway, this whole thing is just so shady and now jersey's rep is getting tainted because of it i don't think i can even trust them anymore

so its no surprise that roman abramovich was able to get away with billions on jersey... i mean who needs tax transparency when you're a billionaire, right? Jersey's "reputational risk" concerns were basically just a formality... like anyone actually cares about what kind of "reputational risk" they pose to the island. and yeah its hilarious that abramovich never actually took up residence on jersey but his associates still managed to set up a family office there... like, totally normal and not suspicious at all...

I'm so over these "tax havens" . Like, what's the point of even having a low-tax regime if you're just gonna let billionaires like Roman Abramovich run wild with their money? It's not like it's fair to everyone else who has to pay their taxes on time.

And Jersey's approach is just lazy . They're more worried about losing out on "financial benefits" than protecting their own citizens' interests. I mean, what if Abramovich had actually taken up residence in Jersey? Would the UK have been okay with it?

It's all so suspicious, and I'm not buying the whole "no evidence of corruption" thing . There's gotta be more to this story than just a convenient coincidence. The fact that they froze $7 billion of assets just as Russia was attacking Kyiv... yeah, that's fishy .

Anyway, Jersey needs to do some serious soul-searching about their role in enabling tax evasion and money laundering. It's time for them to step up and take responsibility for their actions .

I'm low-key shocked that Roman Abramovich got away with billions using Jersey's Tax Haven Shield . It's like he had an open invitation to stash his cash there, and Jersey officials basically waved it through despite Faudemer's warnings about reputational risk . I mean, if Abramovich already had strong ties in the UK and US, why did they even bother running checks? The judgment is like a major wake-up call for Jersey's reputation as a tax haven - gotta get more transparent and accountable . And what about the $7 billion frozen assets? Did Abramovich actually get away with this whole thing or is there still hope for justice to be served? Only time will tell...

I'm tellin' ya, back in my day we didn't have all these fancy tax havens like Jersey . I mean, what's wrong with a little transparency, right? It seems like Abramovich just waltzed on in and took advantage of the whole situation. I'm not sayin' he did nothin' wrong, but it just doesn't sit right that the officials were so lenient, you know?

And what's with all these connections to Putin? That's a whole 'nother can of worms, if you ask me . I mean, I'm not sayin' Abramovich is nothin' but trouble, but it just seems like there was a whole lot of willin' ears when it came to let-tin' him off the hook .

It's a shame, really. Jersey's got a reputation for bein' this super-safe place to stash your cash, and now it's all come callin' into question . I hope they get to the bottom of this mess and figure out what went wrong .

I'm low-key shocked by this whole deal . I mean, you'd think that if someone's got billions they'd be on the radar somehow? But apparently, Jersey's tax haven shield was more than enough to keep Abramovich under wraps . It's wild how his associates still managed to set up a family office there despite him never actually living there . And now that Russia's invaded Ukraine, it's like the whole thing just flipped on its head .

I think what really gets me is that it seems like Jersey officials were more interested in getting a deal with Abramovich than actually doing their due diligence . I mean, wouldn't you want to know if someone's got ties to Putin's regime? It's not exactly a secret that Russia's got some shady going-ons happening. But hey, it looks like Abramovich was able to slide right through the cracks .

Anyway, this whole thing just highlights how bad tax havens can be for society as a whole . I mean, if we can't even get the rich guys to follow the rules, what's the point of having any laws in place? Just saying.

Wow this is wild how Roman Abramovich got away with billions in tax evasion thanks to Jersey's low-tax regime Interesting that even the UK didn't raise major concerns about it, just a lot of red tape and bureaucracy went into it ‍

I'm still trying to wrap my head around how someone like Roman Abramovich got away with hiding billions on Jersey Like what's the point of having all that power and influence if you can't even use it to stay one step ahead of tax authorities? And to think, everyone in Jersey was so caught up in making a deal with him that they ignored Barry Faudemer's warnings about the risks... sounds like a recipe for disaster . I mean, I get it, they wanted the financial benefits, but did they really have to compromise their integrity? I guess we'll just have to wait and see if Abramovich gets charged with anything eventually

I don’t usually comment but I think this whole thing is super suspicious . Jersey's like, a tiny island with some crazy lax laws, and they just let Roman Abramovich waltz in with his billions without even doing due diligence? That doesn't add up to me . And what's even weirder is that no one seems to have raised any major flags about his ties to Putin... I mean, come on!

I also don't get why Abramovich got away with moving all his money to Jersey without anyone noticing . It's like he had a team of lawyers and accountants who just worked around the system . And now that Russia invaded Ukraine, suddenly everyone's all like "Oh no, we have to freeze his assets!" . It's like they were just waiting for some excuse to crack down on him .

Anyway, this whole thing stinks of dirty money and corruption . I don't trust Jersey's 'tax haven' status one bit . They need to get their act together and make sure this kind of thing doesn't happen again .

I gotta say, this whole Roman Abramovich thing got me thinking - what's up with wealthy folks like him always trying to hide their money? It seems like Jersey just played nice with him because they wanted to make a deal. Like, who needs rules if you can just offer someone a sweet spot to stash your billions, right? The fact that Abramovich's lawyers are denying all allegations but there's still an investigation on is kinda cool, I guess. It's like he thought he could just waltz in and out without anyone noticing... or maybe this whole thing was always about the game of cat and mouse between governments. Either way, it's good to see someone keeping Abramovich on his toes

I'm still trying to wrap my head around this one ... I mean, who knew Roman Abramovich was like, basically untouchable? It's wild that he just waltzed into Jersey and started setting up shop, using their low-tax regime as a way to launder his money. I get it, the guy is a billionaire with a lot of connections, but come on! The fact that Jersey officials were so willing to look the other way despite Barry Faudemer's warnings is just shady .

And what really grinds my gears is that Abramovich was able to secure residency in 2017, right before Russia started invading Ukraine. Like, how did nobody connect the dots? It's a good thing the investigation eventually caught up with him and froze some of his assets, but I'm still left wondering: what else was going on behind closed doors?

It just goes to show that tax havens like Jersey can be super sketchy, especially when they're used by people in power. I mean, Abramovich's got a lot of 'splainin' to do if he wants to get out of this one . And let's not forget the bigger picture here: governments around the world need to start cracking down on these kinds of loopholes and secrecy schemes. It's time for transparency, people!

I'm not surprised at all that Jersey was willing to let Abramovich set up shop there. I mean, who doesn't love a good tax break? It's like, sure, we'll just turn a blind eye while you're hiding your billions away... as long as you're a high-roller, right? The fact is, it's easy to get sucked into the trap of thinking that everyone else is doing it too, and that the system will somehow magically self-regulate. But let's be real, this is just how power plays out.