Tag: CJEGC

  • How banking giant ICBC helped Chinese firms gain a foothold in Europe’s wind market

    How banking giant ICBC helped Chinese firms gain a foothold in Europe’s wind market

    After Russia’s 2022 invasion of Ukraine disrupted Europe’s natural gas imports

    , the European Union pledged to source nearly half of its energy from clean technology by the end of the decade. But as the EU pushed for energy independence, a global superpower — not European companies — was poised to reap the benefits of the new strategy.

    In recent years, a number of Chinese wind companies have developed wind parks in Romania, Spain and other countries. European officials suspected those firms could offer cheaper prices thanks to Beijing’s generous state subsidies and in 2024 launched an inquiry to assess whether state aid had given them an unfair advantage.

    Confidential records reviewed by the International Consortium of Investigative Journalists show how, long before that probe, one of China’s most important financial arms had played a key role in establishing Beijing’s economic foothold in Europe. Over the last decade, the records show, the Industrial and Commercial Bank of China has quietly financed the expansion of Chinese wind technology across the continent.

    “ICBC tops the chart of the commercial banks in providing financing to the Chinese solar and wind renewables energy market,” ICBC London officers wrote in an internal 2021 memo.

    The bank’s clients included Goldwind Science & Technology Co., Ltd., the world’s top supplier of wind turbines, which is listed on the Shenzhen and Hong Kong stock exchanges and includes Chinese state entities among its largest shareholders. The company controls a relatively small share of the European market but is currently the main target of the EU investigation for obtaining grants, tax and preferential bank loans that allegedly helped it outpace its European peers. Sometimes called the “the Huawei of green energy,” a reference to the Chinese tech giant that has dwarfed its competition thanks to sustained government support, Goldwind’s global revenue topped $10 billion in 2025.

    ICIJ examined dozens of internal memos and other bank records from between 2016 and 2024 and found that ICBC London approved more than $140 million in loans to help Chinese state companies acquire shares in at least 16 U.K. wind farms. The bank has also facilitated at least $450 million in financing for Chinese energy firms’ operations in Europe.

    The findings are part of ICIJ’s China Capital investigation, which reveals the bank’s unique role in China’s fight for technological supremacy and national self-reliance. The investigation, in collaboration with 23 media partners, is based on 4.8 million confidential files from ICBC’s London branch and a U.K. subsidiary, referred to together as ICBC London.

    A photo of the ICBC London building.

    ICBC’s London headquarters. Image: Scilla Alecci/ICIJ

    The records provide new details on how ICBC London routinely justified deals as part of its support for the government’s top priorities: the massive infrastructure investment plan known as the Belt and Road Initiative and the industrial policy Made in China 2025.

    ICBC London has financed the international expansion of strategic Chinese energy firms, including some accused of benefiting China’s military apparatus and stealing competitors’ industrial secrets, the records show. In Africa, South America and other regions, loans helped China get copper, lithium and other commodities needed to transform its economy while expanding its political influence in resource-rich countries. ICBC did not respond to ICIJ’s requests for comment.

    In recent years, the European Commission, the EU’s executive arm, has used new foreign subsidies regulation to crack down on unfair competition and investigate several industries dominated by China. After probing the electric vehicles sector and railroad construction firms, European officials have recently directed their attention toward wind energy.

    The EU has launched an investigation into whether Chinese firms distorted the internal market by selling cheap products across the whole supply chain. European manufacturers are still the leading turbine providers in the region, but Chinese companies are expanding, according to the trade organization Global Wind Energy Council.

    Experts warn that increasing dependence on China for critical energy infrastructure could make the EU vulnerable to supply chain disruption, outages and even cybersecurity risks if geopolitical tensions rise. Western governments have been on the alert since 2024 when U.S. authorities found that Chinese-state sponsored hackers known as Volt Typhoon had been lying dormant for years inside critical U.S. infrastructure in preparation for future acts of sabotage.

    In the case of Goldwind, the European Commission suspects that Chinese government grants, tax breaks and “preferential financing” may have allowed the company “to offer, in certain cases, lower prices than its competitors, thereby winning more wind project tenders in the EU than it would have done in the absence of those foreign subsidies.”

    Goldwind didn’t respond to ICIJ’s requests for comment. In a public statement published earlier this year, the company said that it complies with local laws.

    Victor Shih, a political science professor at University of California San Diego who has researched technology financing, told ICIJ that bank loans are an important — and often overlooked — form of state subsidy because all Chinese state-owned institutions, including banks like ICBC, support Beijing’s priorities.

    “The EU is worried about subsidies, and banks are a big part of the puzzle,” Shih said. “There’s fiscal subsidies, which come from the government budget, but a lot of the investment is financed by bank loans.”

    Photo illustration showing a hydroelectric dam in Zambia, a man walking in front of an ICBC logo, and a Zesco logo overlaid over the top

    Photo of people walking past a building with a sign that reads ICBC

    https://www.icij.org/investigations/china-capital/how-beijings-africa-ambitions-financed-by-chinas-mega-banks-triggered-a-crisis-in-zambia/

    CHINA CAPITAL How Beijing’s Africa ambitions, financed by China’s mega banks, triggered a crisis in Zambia Oct 26, 2026

    https://www.icij.org/investigations/china-capital/uk-parliament-debates-infrastructure-security-after-china-capital-revelations/

    IMPACT UK Parliament debates infrastructure security after China Capital revelations Sep 15, 2026

    https://www.icij.org/investigations/china-capital/huawei-icbc-banking-us-court-beijing-london/

    HUAWEI Chinese bank helped Huawei spirit $1B out of London days after US indictment of the tech giant Sep 14, 2026

    Recommended reading CHINA CAPITAL How Beijing’s Africa ambitions, financed by China’s mega banks, triggered a crisis in Zambia Oct 26, 2026 IMPACT UK Parliament debates infrastructure security after China Capital revelations Sep 15, 2026 HUAWEI Chinese bank helped Huawei spirit $1B out of London days after US indictment of the tech giant Sep 14, 2026

    ile ICBC wants to make money by financing successful tech companies, Ko said, it may also lend to less profitable firms that fulfill Beijing’s green ambitions. “They’re trying to balance these multiple competing objectives that sometimes can contradict.”

    In a confidential brief for potential lenders, Goldwind touted its insulation from market headwinds as one of its strengths: “Backed by Strong [State Owned Enterprise] background with flexibility from market competition mechanism.”

    Goldwind had “strong access to funding owing to government support of low-cost financing to the renewable energy sectors,” the brief said. It also said that its subsidiaries in China benefited from tax breaks or were taxed at a preferential 15% rate because of their involvement in technology development or government-supported projects. The standard rate was 25% at the time.

    The company had already received loans “at favourable rates” from five Chinese state banks worth about $11.5 billion and government grants totalling at least $135 million to support research on advanced turbine models, the brief said.

    In 2018, as part of a $300 million loan with other banks, ICBC London and two other ICBC branches loaned $110 million to the wind company.

    In the following years, Goldwind went on to install thousands of turbines across six continents, including in Australia, North America and Europe. In 2021, ICBC branches also financed the company’s expansion in Ukraine, the records show.

    ‘A new reality’

    In 2024, armed with new powers to combat companies benefiting from foreign state subsidies, the European Commission requested information from several Chinese wind companies to assess whether state financial backing had given them an unfair advantage over their competitors.

    Over the last decade, the growth of China’s economy and its increasing technological sophistication combined with Beijing’s shift toward authoritarianism and interventionist policies have triggered a tightening of global trade rules.

    “That is a reality of this new era that we’re in,” said Thilo Hanemann, an economist and global trade expert at Rhodium Group, a research firm. Hanemann said the shift had led many governments to reconsider their approach to China to ensure “no individual Chinese investor or bank or company can get to a market position where they could dominate a specific sector area.”

    There may be “some certain parts of our economy where we do not want to have either foreign investment overall or especially foreign investment from a non-allied nation,” he said.

    Ursula von der Leyen, president of the European Commission, and Xi Jinping, China’s president, following their meeting in Paris, France, in May 2024. Image: Nathan Laine/Bloomberg via Getty Images

    Earlier this year, European officials singled out Goldwind in public statements. While acknowledging the company’s limited presence in Europe, the officials found “sufficient indications” that Goldwind had received foreign subsidies that “may negatively affect competition for the supply of wind turbines and related services in the EU.”

    The company said in a public statement that it is cooperating with the European authorities. Beijing has urged the EU to stop the probe and has called the measures against the Chinese firms “discriminatory and restrictive.”

    A European Commission spokesperson told ICIJ that the probe is ongoing but declined to elaborate. Besides Goldwind, the agency is “still looking into the rest of the market,” the spokesperson said in an emailed statement.

    The wind industry now wants to “level the playing field,” according to Zipt, the WindEurope spokesperson, after Huawei and other Chinese firms upended Europe’s solar sector with cheaper inverters, the devices that turn solar panel output into grid electricity.

    “We are a continent that is not very rich in resources,” Zipt said. “So for the time being, solar and wind are the two big mechanisms that we can use to reduce our dependency on fossil fuels. But now the European Union is also clear that they don’t want to swap a dependency on Russian fossil fuel with a dependency on Chinese turbines.”

    Contributors: Jesús Escudero (ICIJ)

    Source: ICIJ · 2026-11-04

    Documents

  • Leaked files reveal how Deloitte Cyprus helped Roman Abramovich hide $10B fortune

    Leaked files reveal how Deloitte Cyprus helped Roman Abramovich hide $10B fortune

    The accounting giant Deloitte helped doctor a paper trail that enabled Russian billionaire Roman Abramovich to conceal billions in assets and dodge millions in tax, according to a joint investigation by the Bureau of Investigative Journalism and BBC Panorama.

    A forensic analysis of corporate records obtained as part of the Cyprus Confidential leak reportedly shows how staff at Deloitte’s Cyprus branch, and its offshoot MeritServus, routinely falsified documents while managing the oligarch’s vast offshore fortune.

    Between 1999 and 2013, Abramovich’s associates worked closely with the financial services providers to backdate and rubber-stamp more than 1,000 documents, the investigation found, including as part of an alleged scheme that one leading expert described as “straightforward and blatant” tax evasion.

    “What you take away from it is that there are professionals who are prepared to bend and break the rules of their profession and therefore the law,” Andrew Mitchell KC, a financial crime barrister who reviewed the findings, told BBC Panorama. “And it looks that they will stop literally at nothing in terms of creating documents.”

    Around 2006,

     

    after Cyprus introduced new corporate disclosure rules,

    more than $600 million in luxury assets — including a French château, superyachts and private jets — disappeared from the accounts of one of Abramovich’s Cypriot companies, Amiscan Investments, TBIJ and the BBC reported. A separate yearslong maneuver wiped nearly $2 billion from the balance sheet of Kravin Investments, another Cypriot company, by effectively rewriting its financial history.

    The revelations from TBIJ and the BBC, alongside the Guardian and the Organized Crime and Corruption Reporting Project, are the latest from the Cyprus Confidential leak obtained by Paper Trail Media and Distributed Denial of Secrets and shared by the International Consortium of Investigative Journalists. The leak includes about 450,000 files from Meritservus, a family-run Limassol firm that spun off from Deloitte in 2005.

    The Deloitte headquarters in Cyprus. Image: Kostas Pikoulas/NurPhoto via Getty Images

    Despite the public split, the firms worked together closely behind closed doors and served as key financial advisors to Abramovich for nearly 20 years, severing ties after he was sanctioned by the United Kingdom and the European Union in response to Russia’s 2022 invasion of Ukraine. ICIJ’s previous reporting on the MeritServus files connected Abramovich to 261 companies and trusts in Cyprus, the British Virgin Islands, Jersey and other secrecy jurisdictions.

    In response to TBIJ and the BBC’s findings, Abramovich’s lawyers denied their client was aware of unlawful backdating, evaded taxes or misled Cypriot authorities: “If an arrangement was proposed by professional advisers of Deloitte’s standing, it would have been entirely proper for companies linked to our client … to rely on it.”

    Deloitte Cyprus said that it “acts in compliance with all applicable laws.”

    The vanishing billions

    Abramovich made his fortune in the 1990s by buying Russia’s state-owned oil company Sibneft after the fall of the Soviet Union for roughly $250 million. A decade later he sold the company back to the government for billions in profit, which he parlayed into investments in real estate, superyachts, a nearly $1 billion art collection and the Chelsea Football Club.

    In 2003, one of Abramovich’s Cypriot companies, Kravin Investments, received a windfall of $3 billion from his sale of Sibneft shares, TBIJ and the BBC reported. Around $2 billion was left accruing interest in Kravin’s bank account — and becoming a tax liability.

    View embedded content

    Leaked emails show how members of Abramovich’s inner circle, who oversaw his financial affairs from London, agreed on a plan to solve the tax issue with his advisors in Cyprus, including MeritServus founder Demetris Ioannides and Antonis Taliotis, a senior tax advisor at Deloitte Cyprus until earlier this year. In one email, Deloitte advised that “certain changes will have to be made to the accounts (bank account balances, interest income, profit and loss account).”

    Ioannides’ lawyers told TBIJ and the BBC that he was unable to respond to requests for comment. Talitotis declined to comment through Deloitte Cyprus.

    From 2005, MeritServus began backdating documents to 2003, making it appear as though the $3 billion was transferred out of Kravin’s accounts to another of Abramovich’s companies in the British Virgin Islands instead of sitting untouched for years, the investigation found.

    MeritServus reportedly then created a backdated agreement claiming that Kravin had been holding and investing the money on the other company’s behalf and therefore shouldn’t be taxed in Cyprus. To add to the illusion, MeritServus also drafted fake correspondence between the companies as well as other corroborating documents — some reportedly as recently as 2008.

    Several experts, including Mitchell, told TBIJ and the BBC that the backdated records were devised to evade taxes.

    A couple stand together, linking arms andsmiling at a gallery opening

    https://www.icij.org/investigations/cyprus-confidential/chelsea-fc-fined-millions-over-secret-payments-under-abramovich-ownership/

    IMPACT Chelsea FC fined millions over secret payments under Abramovich ownership Mar 17, 2026

    https://www.icij.org/investigations/cyprus-confidential/uk-mps-push-for-probe-into-russian-billionaires-possible-1b-tax-dodge/

    TAX HAVENS UK MPs push for probe into Russian billionaire’s possible $1B tax dodge Feb 05, 2025

    https://www.icij.org/investigations/russia-archive/leak-reveals-majority-interest-in-roman-abramovichs-nearly-1-billion-art-collection-was-transferred-to-his-ex-wife-ahead-of-sanctions/

    Art Leak reveals majority interest in Roman Abramovich’s nearly $1B art collection was transferred to his ex-wife ahead of sanctions Sep 22, 2023

    Recommended reading IMPACT Chelsea FC fined millions over secret payments under Abramovich ownership Mar 17, 2026 TAX HAVENS UK MPs push for probe into Russian billionaire’s possible $1B tax dodge Feb 05, 2025 Art Leak reveals majority interest in Roman Abramovich’s nearly $1B art collection was transferred to his ex-wife ahead of sanctions Sep 22, 2023

    Source: ICIJ · 2026-10-14