Two of those shells — Batherm Ventures Ltd. and Matias Co Ltd. — appear to be deeply entwined with the Troika Laundromat, a network of shell companies that operated from 2006 to 2013. So-called ‘laundromats’ are complex systems for moving money that allow corrupt politicians, organized crime figures, and wealthy business people to secretly invest their ill-gotten millions, launder money, evade taxes, and fulfill other goals. The Troika Laundromat is believed to have moved at least $4.6 billion. Batherm and Matias sent more than $323 million into this system.

The leaked documents do suggest that Alexander Abramov, a Russian billionaire, was behind both companies, and that he used them to buy a major Russian energy concern at an enormous discount. Abramov later received a Cypriot EU passport with the help of the Anastasiades law firm.

The documents do not show any specific evidence that the firm or any employees broke any law or committed any crime. The transactions do raise questions about dealings between Anastasiades’ law firm, his associates, and Russian financial money laundering networks used for criminal activity. They also reenforce long-standing concerns about relationships that some say have compromised Cyprus’s independence.



“Russian money laundering, admittedly the biggest threat to the European financial system, has been funneled historically through the Baltics and Cyprus with the latter assuming a more fundamental role as a conduit for dirty capital flows,” said Roman Borisovich, a former banker and leader of ClampK, a UK-based anti-corruption organization. “The ongoing dismantling of this system will have a devastating effect on the finance and economy of both. However, if in Latvia the damage was done primarily by the Russian and foreign bankers, in Cyprus the problem is homegrown.”



“It is the Cypriot lawyers, accountants, and other corruption enablers who destroyed their island’s financial system from within, and their compatriots should hold them responsible for these treasonous acts,” Borisovich added.



Nicos Anastasiades did not respond to requests for comment.