Emails show PwC helped Russians dodge sanctions

afr.com:

A massive leak of documents has exposed how accounting giant PwC’s Cyprus arm scrambled to help Russian oligarchs facing the threat of sanctions in March last year, moving assets out of their names in the first days of the Ukraine invasion.

The leaks show frantic email exchanges marked “URGENT” and “PLEASE APPROVE” as PwC Cyprus partners authorised transfers of shares and funds, in one case even before the price of the transaction had been decided.

The Ukraine invasion in February 2022 triggered frantic emails for Russian clients of PwC Cyprus. ICIJ

The Cyprus Ministry of Finance told the International Consortium of Investigative Journalists, which is heading an international collaboration of media partners investigating the new leak, that a criminal investigation was under way into share transfers by Alexey Mordashov, one of Russia’s richest industrialists. The transfers, which were assisted by PwC Cyprus, moved a $1.4 billion investment out of his name a day after he was slapped by European Union sanctions.

The revelations are a new embarrassment for PwC, which cut links with its Russian arm last year after the Ukraine invasion. The firm has repeatedly stressed its zero tolerance policy for clients facing sanctions anywhere in the world.

PwC International media chief Mike Davies said in a statement: “All PwC firms, including PwC Cyprus, take the application of sanctions against clients and sanctions prohibiting various professional services extremely seriously.”

“PwC Cyprus is not aware of such a criminal investigation being carried out,” the local firm said of the Mordashov share transfers. “Whenever there is a reportable event, PwC Cyprus takes appropriate action.”

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