The recent “Cyprus Confidential” investigation (link), spearheaded by the International Consortium of Investigative Journalists (ICIJ) and Paper Trail Media, has cast a spotlight on Cyprus’s role in assisting Russian oligarchs and billionaires to shield their wealth, including from financial sanctions. This extensive investigation echoes FinTelegram’s earlier reports that have repeatedly exposed Russian ventures operating through entities and trustees in Cyprus.
The ICIJ’s endeavor, a colossal eight-month collaboration with 69 media partners across 54 countries and one territory, involved over 270 journalists. It unveiled the preferential treatment afforded to Russian elites in Cyprus, facilitated by the nation’s favorable tax regime, opaque corporate structures, and the now-defunct “golden visa” program.
This program, which granted Cypriot citizenship to non-EU nationals in return for property investment, has recently drawn global scrutiny, especially after Russia’s 2022 invasion of Ukraine. The wealth amassed and protected by Cypriot offshore service providers for these affluent clients has become a target for governments worldwide, aiming to weaken President Vladimir Putin’s regime.
The ICIJ’s meticulous analysis revealed nearly 800 companies and trusts in secrecy jurisdictions linked to Russians sanctioned since 2014, with more than 650 of these based in Cyprus. These entities range from parent companies of Russian holdings to subsidiaries and trusts designed to obscure investments in high-value assets like real estate, yachts, and famous artworks.
Moreover, the ICIJ found that Cypriot law firms and other professional services have been actively servicing at least 25 Russians sanctioned post-Crimea annexation in 2014, and at least 71 sanctioned since the start of the Ukraine war. These relationships, in some cases, predate the sanctions. To ensure accurate tracking, ICIJ separated the counts for clients sanctioned before and after February 2022, employing OpenSanctions for data verification. This was cross-checked against databases from the EU, U.S., U.K., Australia, Canada, New Zealand, and Ukraine, as well as the Dow Jones’ risk database.
As an EU member state, Cyprus is subject to EU sanctions, which the ICIJ prioritized in its investigation. Utilizing Datashare for batch searches, the ICIJ and its partners could streamline their analysis, producing easily navigable spreadsheets of the findings.
This investigation not only corroborates FinTelegram’s previous reports about Cyprus being a haven for Russian wealth but also highlights the island’s extensive role in providing financial services to Russians, including those under international sanctions. The “Cyprus Confidential” investigation thus confirms the critical need for transparency and regulatory oversight in global financial dealings, especially in offshore jurisdictions like Cyprus.
