Newsroom
A growing scandal over Cyprus’ handling of VAT debts tied to Russian billionaire Roman Abramovich has taken a sharp new turn, this time with a bombshell allegation involving former President Nicos Anastasiades.
According to journalist and author Makarios Drousiotis, the state effectively wrote off €25 million in VAT owed by a Cyprus-based company linked to Abramovich. And the process, he says, began with a single phone call from Anastasiades to then-Finance Minister Haris Georgiades in 2013.
At the time, Cyprus was in crisis. The economy was reeling, development projects were frozen, and people were lining up at food banks. Yet behind the scenes, according to Drousiotis, a powerful few were making calls that benefited one of the world’s most controversial oligarchs.
“The state gave away millions in VAT owed by a company linked to Roman Abramovich,” journalist Makarios Drousiotis wrote in a scathing social media post. “Back then, the former president was essentially handing a €17 million favor to the Russian oligarch.” (Translated)
Shut out of Parliament
Drousiotis also revealed he was blocked from attending a key session of Parliament’s Audit Committee, where the case was being examined. Green MP Alexandra Attalidou called the decision unacceptable, urging Speaker Annita Demetriou to reverse it in the name of transparency.
“Transparency dictates immediate revocation of the decision,” Attalidou posted, echoing concerns that Cyprus’ institutions are still shielding powerful figures from scrutiny.
A saga with mounting questions
This isn’t a new controversy. Earlier this month, MPs exploded in anger during a session investigating the disappearance of “Blue Ocean,” a Cyprus company linked to Abramovich, which was dissolved earlier this year without settling a €14 million VAT debt dating back over a decade.
MPs heard how the company was fined in 2012 after tax officials found unpaid VAT from 2005 to 2010. Blue Ocean fought the fine in court and lost. Twice. The final nail came in March 2024, when the Supreme Court dismissed their appeal. Just four months later, the company vanished.
“No one seems to know if a single cent was ever paid,” said MP Irini Charalambidou. “How does a company just disappear after owing that kind of money?”
MPs expected answers. Instead, they got a legal service representative who said she was there “to listen and take notes.” Furious MPs cut the session short and demanded the Attorney General appear in person.
Who dropped the ball?
The Audit Committee is now probing the roles of the Legal Service, the VAT Office, and the Registrar of Companies, institutions that, critics say, seem remarkably uninterested in chasing down millions from a billionaire’s company.
Even more concerning, Drousiotis’ latest claim paints a picture of political interference at the highest level. If the debt write-off did begin with a presidential phone call, as alleged, it would suggest that legal and tax systems bent to the will of those in power.
“This is no longer about incompetence,” one political analyst said. “It’s about whether Cyprus is still serving its people or just its elites.”
International fallout
The implications extend far beyond Cyprus. German authorities reportedly investigated Blue Ocean, warning that the company looked like a €280 million pyramid scheme designed to move money and dodge taxes. It’s still unclear whether Cyprus followed up on those warnings or simply looked the other way.
In a time when President Nikos Christodoulides is actively trying to clean up Cyprus’ international image and attract serious investment, critics say this kind of scandal undercuts everything.
“If institutions can’t or won’t stand up to powerful interests,” said MP Attalidou, “how can we expect the world to take us seriously?”
As Parliament prepares for more testimony and possible subpoenas, the public is left wondering: who will be held accountable for the missing millions? And is this the only case, or just the one that got caught?
