The “Cyprus Confidential” reports were released this afternoon, shedding light on the island’s role in facilitating the movement of illicit funds for autocratic regimes, including that of Russian President Vladimir Putin.
The revelation, an extensive investigation led by the International Consortium of Investigative Journalists (ICIJ), in collaboration with Paper Trail Media and 67 media partners unveils intricate webs connecting Cyprus to entities associated with Syria’s authoritarian rulers, who sought to evade U.S. sanctions through intermediaries on the island, and Kremlin affiliates orchestrating payments to a prominent German journalist known for producing favourable coverage of Russia’s autocratic leader.
The Cyprus Confidential stories, stemming from an exhaustive eight-month inquiry, delve into Russia’s pervasive influence over Cyprus’ intertwined realms of politics and finance. The investigation exposes how the European Union has struggled to assert control over its member state, allowing a banking system bloated with illicit wealth to persist.
Against the backdrop of Russia’s invasion of Ukraine in 2022, the revelations demonstrate how PwC’s Cypriot unit facilitated Russian oligarchs in evading Western sanctions, turning Cyprus into a clandestine financial battleground.
The heart of the Cyprus Confidential investigation lies in 3.6 million leaked files sourced from six financial service providers and a website company. ICIJ, with a team of over 270 journalists from 54 countries, meticulously combed through confidential background checks, organizational charts, financial statements, bank account applications, and email messages dating from the mid-1990s to April 2022. These documents offer an unprecedented glimpse into a rogue financial system that empowers some of the West’s staunchest adversaries.
Despite Cyprus’ efforts to present itself as a robust jurisdiction for anti-money laundering and sanctions enforcement, the leaked records paint a different picture. Critics argue that Cyprus’ economic model, known as the “Cyprus model,” relies on a disproportionately large financial sector, weak financial disclosure laws, and a central bank that has enabled the island to become a destination for over $200 billion in Russian investment, consolidating influence in the hands of oligarchs.
The investigation spotlights key figures such as Nicos Anastasiades, Cyprus’ former president, whose ties to a major offshore services practice catering to Russian clients were scrutinised in a 2019 OCCRP investigation. The Cyprus Confidential project, leveraging ICIJ’s data analysis, reveals the island’s role in facilitating the movement of oligarch wealth, whether for concealing assets outside Russia, reinvesting in the country, or undermining democratic institutions in the West.
Notably, global accounting giant PwC comes under scrutiny for its complicity in aiding Putin’s allies during Russia’s invasion of Ukraine. The investigation details how PwC Cyprus assisted Russian industrialist Alexey Mordashov in transferring a $1.4 billion investment to elude EU sanctions. Despite later severing ties with sanctioned clients, PwC’s actions highlight the challenges posed by global firms operating in multiple jurisdictions.
Moreover, among the revelations is the exposure of German journalist Hubert Seipel, renowned for his extensive access to Putin, who received approximately $700,000 as a “sponsorship” from a shell company linked to sanctioned oligarch Mordashov. The leaked records raise questions about the authenticity of Seipel’s unbiased portrayal of Russia and Putin, shedding light on the intricacies of Russia’s propaganda machinery operating abroad.
The Cyprus Confidential files underscore the island’s transformation into a magnet for the rich and powerful, navigating ethical grey areas. The leaked documents implicate individuals involved in selling spyware to authoritarian regimes, former European politicians aligning with sanctioned Russian oligarchs, and a sanctioned Russian oligarch secretly financing a Holocaust movie alongside European taxpayers.
Read the revelations here:
- Cyprus ignores Russian atrocities, Western sanctions to shield vast wealth of Putin allies
- How Cyprus rose to become the beating heart of the Putin regime’s shadow financial system
- As sanctions loomed, accounting giant PwC scrambled to keep powerful Russians a step ahead
- Beyond Cyprus, PwC has weathered a decade of global probes and scandals
- German journalist dubbed the ‘Putin connoisseur’ had secret book deal with Russian oligarch
