📌 Introduction
Sanctioned Russian billionaire Roman Abramovich could be facing one of the largest tax bills in UK history, after leaked documents raised serious questions about how billions of pounds in offshore investments were managed — and taxed. Investigators say the case could expose a massive tax shortfall linked to funds that also helped bankroll Chelsea Football Club.
🔍 Alleged Offshore Scheme Under Scrutiny
Leaked records reviewed by journalists suggest that up to $6bn (£4.7bn) in hedge fund investments were routed through companies registered in the British Virgin Islands (BVI) — a well-known low-tax jurisdiction.
However, evidence indicates that key decisions about those investments may have been made from within the UK, which could mean the profits should have been subject to UK corporation tax rather than offshore treatment.
⚖️ Why UK Tax Authorities May Intervene
Under UK law, offshore companies can lose their tax-exempt status if they are effectively managed and controlled from the UK. Experts say documents pointing to strategic oversight from London could be a decisive factor.
A senior tax specialist described the evidence as a potential “smoking gun” — suggesting the structure may cross the line from tax avoidance into unlawful evasion.
👤 Key Figure: Eugene Shvidler
At the centre of the controversy is Eugene Shvidler, a longtime Abramovich associate and former Chelsea FC director. Records show he held sweeping powers over multiple offshore entities while living in the UK for nearly two decades.
Court filings in the United States further identified a close associate — later linked to Shvidler — as the individual making critical investment decisions for Abramovich’s offshore funds.
⚽ How Chelsea FC Was Funded
Investigators traced a financial trail showing that profits from these offshore investments eventually flowed into companies that loaned hundreds of millions of dollars to Chelsea FC during Abramovich’s ownership.
By the time Chelsea lifted multiple major trophies in 2021, a significant portion of the club’s funding could be linked back to companies that allegedly benefited from untaxed profits.
💷 How Big Could the Tax Bill Be?
Based on available financial data and historic UK tax rates:
- Estimated unpaid tax: over £500m
- With penalties and interest: £700m to £1bn+
- Final amount could exceed previous UK records, including the £653m bill imposed on Formula One boss Bernie Ecclestone
Some liabilities may be time-barred, but experts warn the total exposure could still be enormous.
❄️ Frozen Chelsea Sale Funds Add Pressure
Following Russia’s invasion of Ukraine, Abramovich was allowed to sell Chelsea FC on the condition that £2.5bn from the sale would be donated to Ukrainian war victims. Nearly three years later, the money remains frozen in a UK bank amid disputes over its use.
The investigation now suggests that while Ukrainians await aid, UK taxpayers may also be waiting for unpaid taxes.
🧠 Official Responses
- Abramovich’s lawyers insist he relied on professional tax advice and deny personal responsibility.
- Shvidler’s legal team rejects claims of wrongdoing, calling the reporting misleading.
- UK politicians are urging tax authorities to launch an urgent investigation.