The news of the International Consortium of Investigative Journalists (ICIJ) regarding the assistance provided by the auditing firm PwC to the Russian tycoon, Alexei Mordashov, was the focus of attention for the Cypriot public during yesterday’s initial wave of revelations by the international media consortium.
In one of the ten reports posted yesterday on the central website of the ICIJ, which is presented as directing this extensive journalistic investigation, the clear position is highlighted that “PwC helped Alexei Mordashov, one of the richest industrialists in Russia, transfer an investment capital of $1.4 billion outside his name to avoid EU sanctions.”
In the flagship of the revealing reports of this consortium, it is additionally noted that the Cypriot Ministry of Finance is aware of the transfer of share ownership, and according to a Cypriot official from the Ministry who spoke to the ICIJ network during the current month, a related criminal investigation is underway.
Anastasia Misanina, speaking as a representative of Mordashov, denied the commission of any wrongdoing by the entrepreneur. According to the publication, Mordashov’s collaborator told the ICIJ the following:
“All information and notifications from regulatory authorities regarding the transfer of shares were announced properly to the relevant authorities and made public as required by law.” And she added, “Not once in Mr. Mordashov’s long career, or any of the companies he manages, has violated any law, either in Europe, Russia, or any other jurisdiction.”
At the same time, sources close to Cypriot PwC, speaking to Phileleftheros, claimed that any criminal investigation into the matter does not concern the auditing firm.
Another well-known network of investigative journalists, OCCRP, seems to give another dimension to the issue. Specifically, it focuses on the timing of Mordashov’s capital transfer, noting that “PwC Cyprus may have violated EU sanctions by selling shares on February 28, 2022.”
The OCCRP report continues: “European officials told OCCRP partners, Paper Trail Media and The Guardian, that ‘sanctions take effect at the beginning of the first hour of the day of publication of the sanctions notice in the Official Gazette.’ This means that Mordashov was technically under sanctions throughout the day on February 28, 2022, although neither he nor PwC likely knew of his inclusion in the sanctions until it was announced in the evening.”
It should be noted that on February 28, 2022, the European Union placed Mordashov on the sanctions list as part of the restrictive measures against Russia for its invasion of Ukraine. At the same time, his assets were frozen. In March, the Italian police seized one of his yachts, the “Lady M.”
Evraz
In the main report of the ICIJ, the claim is made that PwC helped two more Russian oligarchs transfer $100 million. A photo of the former officials of the company Evraz, Alexander Abramov and Alexander Frolov, follows.
In a similar separate publication by the ICIJ, it is noted about Evraz that it produces steel and supplies 97% “of the lines used by Russian trains to transport supplies and troops to the front lines of the war with Ukraine.” It is mentioned, among other things, that on March 1, 2022, a director of Cypriot PwC, in an urgent message, informed a colleague about the intention of the aforementioned entrepreneurs.
It is added that two months later, Abramov and Frolov were placed on the UK sanctions list as supporters of Russia’s war machine. It is also noted that their request for the transfer of funds had been satisfied in the early days of the war by the company’s central offices in London, in a manner that constitutes money laundering.
The Billionaires
Yesterday found several Greek Cypriots engaged in public affairs reading the reports with interest, attempting to identify points indicating blatant illegality. What is deduced is that from the 3.6 million leaked documents, several details emerge. Notably, the confidential Cypriot documents include six billionaires: Roman Abramovich, Petr Aven, Alexey Mordashov, Rinat Akhmetov, Alexander Abramov, and Alexander Frolov.
“Anastasiades made all this possible.”
Nikos Anastasiades is presented by the consortium of investigative journalists ICIJ as responsible for serving Russian interests during Western sanctions. In the main of the 10 reports adorning the ICIJ website, the former President of the Republic is portrayed by journalist Neil Weinberg as the man “who made all this possible.” It is reminded that the title of the article is as follows: “Cyprus ignores Russian atrocities and Western sanctions to protect Putin’s allies’ vast wealth.”
Subsequently, details are provided about the profile of the former head of state, as well as his presidency:
“A lawyer who founded a significant service company that attracted Russian clients, Anastasiades served as President of Cyprus from 2013 until early 2023. A 2019 investigation by the ICIJ’s media partner OCCRP reported that before taking office, associates in his law firm served as officials of pharmaceutical companies involved in massive money laundering suspicions, including agreements related to Putin’s allies. Upon taking office, Anastasiades resigned from his office, handing it over to two daughters and other associates, traveling to Moscow, where he met with Putin and secured agreements for the promotion of closer economic and financial relations. (…) In a statement to the ICIJ, the company said, ‘We want to emphatically state that none of our law firm members has been charged with any wrongdoing. These allegations are entirely baseless, lacking any fundamental argument.'”
The Leak
On the Reporters United website, whose editors were among the 270 participating in this extensive investigation, details are given about the leak of the documents:
“The Distributed Denial of Secrets (DDoS – a non-profit organization dedicated to publishing and archiving leaks), Paper Trail Media, and the journalistic network Organized Crime and Corruption Reporting Project (OCCRP) acquired the documents of Cyprus Confidential in seven separate leaks. They provided them to the ICIJ, which organized and distributed them to partners through the secure document research platform Datashare. The files of MeritServus and MeritKapital were acquired by the Distributed Denial of Secrets. The files leaked from Cypcodirect, ConnectedSky, and i-Cyprus were obtained by Paper Trail Media. In the case of Kallias & Associates, the documents were acquired by the Distributed Denial of Secrets, which shared them with Paper Trail Media and the ICIJ. The files of DJC Accountants were acquired by the OCCRP network.”
President Christodoulides: “No one is above…”
The message that everything will be investigated was sent by the President of the Republic, Nikos Christodoulides.
In statements last night at an event in Paliometocho, he said, among other things: “(…) let me remind you that even after assuming the responsibilities of the new government and in light of the sanctions imposed by the British and the Americans, we further strengthened the entire institutional framework. Everything that came to light will be investigated, and indeed, with a timeline. I repeat, no one is above the reputation of our country.”
