A series of publications about the ties of Russian oligarchs who are under sanctions due to relations with the Kremlin with a Cypriot company, the British newspaper Guardian has posted on its website. The newspaper also highlights the reactions of SELK and MOKAS while quoting a Government representative who states that the country's support for EU sanctions is "clear and indisputable" and that the cooperation with the respective authorities in Britain and the USA is "exemplary and mutually beneficial".
He states that Cypriot natural and legal persons under sanctions are controlled by the competent Cypriot authorities.
p>
One of the most extensive reports refers to Konstantin Malofeev, who is accused by the West of financing Russian separatists in eastern Ukraine. Known as the "Orthodox oligarch", because of his support for the Russian church, he was placed under sanctions by the EU and the US in 2014, after the annexation of Crimea.
However, he allegedly continued for three years to be a client of the Cypriot accounting and offshore services company MeritServus, which allegedly helped, as an apparent shareholder, companies connected to Malofeev to move money and issue loans, even in US dollars.
The company reportedly assisted in transactions worth $35m and €2.5m, until it cut ties with the Russian oligarch in spring 2017.
The newspaper cites for all this a series of documents leaked by MeritServus of the accountant Dimitris Ioannidis, who was last week put on the UK sanctions list for ties to Roman Abramovich.
The documents, called "Dossiers of the oligarchs" by the Guardian and its partner Organized Crime and Corruption Reporting Programme, “will raise new concerns about financial controls in Cyprus, an EU member state that has for years facilitated the movement of Russian capital into Europe and beyond”, comments the publication. .
In a statement, prior to the imposition of sanctions by London, the Cypriot company had rejected any accusation of money laundering or breach of sanctions laws. He added that he broke off relations with Malofeev as soon as he realized that he was on a sanctions list, informing SELK and MOKAS, with the matter "being resolved" with both organizations.
In an initial statement SELK stated that as soon as the case became known, it requested a full presentation of data from the company and in the end it was decided that the sanctions had not been violated. Following the imposition of sanctions against MeritServus, SELC said it will assess the situation and consider whether further action is required.
MOKAS said it has no legal mandate to implement or monitor the implementation of sanctions.
A representative of the Cypriot government cited by the Guardian states that the country's support for EU sanctions is "clear and unquestionable". He added that the cooperation with the respective authorities in Britain and the USA is "exemplary and mutually beneficial" and that Cypriot natural and legal persons under sanctions are controlled by the competent Cypriot authorities.
In a second publication, the Guardian focuses on Mr. Ioannidis and his professional and personal relations with Roman Abramovich. He writes indicatively that in September 2009 the Cypriot chartered accountant was among the guests at a birthday party of the former manager of Chelsea, then a group owned by the Russian oligarch.
It is noted that staff at MeritServus allegedly used the code name "mr. Blue» for the biggest customer, probably the then owner of the "blue" of Chelsea. The company's relationship with the Russian tycoon reportedly began in 2001 and included services to his associates.
The article then examines the relationship between Russian money and Cyprus, commenting that some describe the island as « “Moscow in the Mediterranean”.
Reference is made to Russian investments in Cyprus and the large Russian community of Limassol, but also to the use of the “golden passports” by Russians.
The Guardian article comments that sanctions officials are "increasingly concerned about the role Cyprus has played – and may still play – in facilitating the movement of Russian capital» ?.
The Guardian article
