From Safe Haven to Sanctions Target
Newly released court documents have exposed the intricate relationship between Jersey, Roman Abramovich, and the British government, revealing how the Russian oligarch's billions found sanctuary in the Channel Island tax haven with London's tacit approval.
The 370 pages of judgments, published after a gagging order was lifted, detail a two-year legal battle that sheds unprecedented light on how high-net-worth individuals navigate the UK's financial periphery.
The Welcome Mat for Russian Wealth
Between 2016 and 2017, Jersey authorities granted residency to Roman Abramovich and four close associates under a special scheme for ultra-wealthy individuals. The Russian billionaire's application received approval in September 2017, though he never actually took up residence on the island.
More significantly, the Jersey government permitted Abramovich to relocate companies controlling the bulk of his fortune to the crown dependency. Asset transfers worth $7 billion occurred in 2017 and again in 2021, just months before Russia's full-scale invasion of Ukraine.
In 2016, a company ultimately owned by Abramovich - believed to be a family office managing his wealth - received a licence to operate in Jersey. This entity advised on philanthropic activities, acquisitions of aircraft and yachts, and investments across Europe and North America.
London's Silent Approval
The court records reveal extensive consultation between Jersey and London officials, with at least seven background checks and four face-to-face meetings occurring over several years.
Despite heightened sensitivity around Kremlin-linked figures following Russia's 2014 annexation of Crimea, and even after the 2018 Salisbury poisonings, UK officials consistently gave the all-clear.
In one email, a Foreign and Commonwealth Office official noted about Abramovich: "We have no significant concerns, issues or adverse traces... He in particular has a large footprint but not of significant concern or investigation."
Robert MacRae, then Jersey's attorney general, confirmed to his government that London raised no political objections to welcoming Abramovich and his fortune.
The Tide Turns
Russia's assault on Kyiv in 2022 dramatically changed the landscape. In April 2022, Jersey authorities froze $7 billion of assets suspected of connections to Abramovich and conducted searches across the island.
The oligarch had by then been placed on both UK and Jersey sanctions lists. By January 2023, a court ruling revealed the raids formed part of a criminal investigation by the Jersey attorney general into suspected money laundering and sanctions breaches.
The money laundering investigation focuses on whether Abramovich obtained his wealth through corruption while building his oil and gas business, Sibneft, during Russia's privatisation era of the 1990s.
Legal Battles and Denials
Abramovich has fought back through the courts since 2023, seeking to overturn the asset freeze and, in a more unusual move, suing for judicial review of the decision to investigate him - an attempt to shut down the probe before any charges were brought.
His lawyers deny any involvement in corruption, claiming the investigation is politically motivated. They argue Abramovich was "encouraged" to bring his assets to Jersey, describing subsequent events as "state-engendered entrapment."
All routes for appeal were exhausted last week when the judicial committee of the privy council rejected Abramovich's bid to overturn the Jersey court decisions.
Early Warnings Ignored
The documents reveal that concerns about Abramovich were raised as early as 2016. Barry Faudemer, then head of enforcement at the Jersey Financial Services Commission, warned ministers that "Abramovich's close association with Putin raises a reputational risk to the island."
He expressed fears that Abramovich could use a Jersey-registered company "to launder the proceeds of corruption on behalf of third parties including Putin."
However, Faudemer also noted that refusing the application might prove difficult, given Abramovich's extensive business interests in Jersey and his clean record as Chelsea FC owner.
The case continues to unfold, with Jersey's attorney general confirming the investigation remains live, while Abramovich's legal team claims no progress has been made in the three years since it began.
