Questions are being raised against international banks Barclays and UBS over their alleged ties with Russian oligarch Roman Abramovich’s secret offshore trusts, which were subjected to sanctions by the UK and Europe.
According to the Guardian newspaper, which said to have access to the leaked Oligarch files, these two banks were taking care of companies and assets of the oligarch, said to be valued at least $940 million.
But days before the Russian invasion of Ukraine, the newspaper said that the ownership of 10 offshore trusts was hurriedly transferred to Abramovich’s children.
The leaked documents showed that the reorganisation was done in the last week of February 2022.
The UK government had on March 10 slapped sanctions on Abramovich for his alleged close ties with Russian President Vladimir Putin. Following suit, the EU imposed its own sanctions on March 13.
Abramovich has resolutely denied the allegations that he was closely associated with Putin and is appealing against the EU measures.
These leaked files were said to be from the Cyprus-based offshore service provider MeritServus, which has managed Abramovich’s financial interests for more than 20 years.
The firm administered 10 trusts established to benefit Abramovich and a sprawling network of offshore companies.
Responding to the report, a spokesperson for Barclays told Guardian that it “understands the importance of sanctions regulations” and takes its obligations “very seriously”. While a representative for UBS said it complies “with all relevant sanction requirements”.
What are Oligarch files?
The Oligarch files, which have been leaked, contain confidential documents containing emails, banking records, company filings, trust documents and compliance reports.
The files were provided by Cyprus-based offshore service provider MeritServus.
It helps its clients set up and manage offshore companies and trusts to shelter their wealth.
Cyprus, an EU member state, has been the prime destination for wealthy Russians to stash their fortunes.
It said that Roman Abramovich appears was one of the clients of MeritServus for more than 20 years.
Holding assets in offshore havens such as Cyprus, sometimes via trusts, is not in or of itself illegal, and there are legitimate reasons why some people do it.
(With inputs from agencies)
