Tax Commissioner to pursue criminal charges over €25 million debt of Abramovich's company

By court order, Roman Abramovich’s company Blue Ocean Yacht Management Ltd has been re-registered on the Cyprus Business Entities Registry and the Tax Department is preparing to initiate criminal proceedings against those responsible in order to recover the company's debt.

Abramovich is a businessman and politician reported to be one of the richest people in Russia. He has Russian, Portuguese, and Israeli citizenship

The company, which had outstanding tax debts to the Republic of Cyprus, had been struck off last year. As the Tax Commissioner, Sotiris Markides, told CNA, the Tax Department is preparing to initiate criminal proceedings against those responsible in order to recover the debt.

The total amount owed is approximately €14 million, which, including interest, rises to €25 million.

The company was originally incorporated on 11/11/2002 under the name Blue Ocean Yacht Management Ltd. On 27/07/2011, it changed its name to BOYM - Blue Ocean Yacht Management Ltd.

According to the Registrar of Companies, Irini Mylona Chrysostomou, on 26/08/2022 her office issued the first three-month notice of intent to strike off the company in the Gazette, as the company was non-compliant with the relevant legislation due to the absence of directors. The Tax Department filed an objection on 21/10/2022 to prevent the company from being struck off.

A second three-month notice was published on 15/09/2023, and again the Tax Department filed an objection on 27/11/2023. However, on 17/07/2024, the Tax Department withdrew its objection, leading to the company being struck off on 19/07/2024.

After the issue was raised in the House of Representatives, the Tax Department, as a creditor, submitted a request for a court order to re-register the company. The court order was issued on 16/06/2025 and submitted to the Registrar of Companies on Friday 20/06/2025. The company was thus re-registered (with effect from the date of the court order, 16/06/2025), and it is considered as if it had never been struck off.

Chrysostomou told CNA that, under the law, a company that is struck off the register and re-registered by court order “is considered as never having been struck off — it comes back exactly as it was”. She added that the company still has no directors.

On his part, Tax Commissioner, Sotiris Markides, told CNA that the Tax Department that under the law they are legally entitled to prosecute the directors for a criminal offence because they failed to ensure the relevant VAT was paid.

He clarified that the criminal charges will apply to the directors listed during the period the debt was incurred — that is, in 2012 and earlier.

“We reinstated the company and we will prosecute whoever we are legally allowed to for criminal offences. Our legal team is working on it. There will be no exceptions,” he noted. Asked when the prosecutions are expected, he said the matter is procedural and expressed hope that the process would begin before the courts' summer recess.

(Source: CNA)