Paradise Papers expose says Russia-funded firms invested heavily in Twitter, Facebook

The US Congress has been investigating Russia's interference in the 2016 US election by using social media platforms like Facebook and Twitter. Now, a trove of confidential documents has revealed that these two companies received major investments from firms with ties to Kremlin-owned corporations. The documents, called "Paradise Papers" were obtained by German newspaper Suddeutsche Zeitung.

The documents were also reviewed by the International Consortium of Investigative Journalists (ICIJ) and several media outlets across the globe. According to the ICIJ, the papers reveal that the one the Kremlin-owned firms, VTB Bank,  directed $191 million into an investment fund owned by billionaire Yuri Milner. The Milner-owned DST Global used the money to buy a large stake in Twitter back in 2011.

"They also show that a subsidiary of the Kremlin-controlled energy giant Gazprom heavily funded an offshore company that partnered with DST Global in a large investment in Facebook," the ICIJ said in a statement on Monday.

Milner and other partners made a lot of money after they sold their stakes right after Facebook's initial public offering in 2012 and Twitter's IPO in 2013. The documents reveal that Russia had a financial interest in these social media companies long before the 2016 presidential election. Facebook and Twitter in their defence said they had properly reviewed Milner's investments.

In response to questions from the ICIJ and its partners, Milner said the investments his firm makes, including the Twitter and Facebook deals, have always been based on business merits and have nothing to do with politics. VTB also confirmed that it had invested in Twitter through Milner's firm DST Global.

Facebook and Twitter have faced heavy criticism ever since the US elections for spreading fake news that allegedly influenced voting decision. The social media giants have since been working to curb the spread of false information by coming out with improved tools and algorithms. 

The documents further revealed that Apple was seeking out a new tax shelter around Europe and the Caribbean, Recode reported. The report adds that in an email obtained by ICIJ, an Apple lawyer asked if any one one of six tax havens would allow its Irish subsidiary to "conduct management activities ... without being subject to taxation in these jurisdictions."

Apple in August had to face the wrath of EU for striking a deal with the Irish government that allowed it to avoid paying taxes in many of its international  markets. The European Commission ordered Apple to pay $13 billion in back taxes. Both Apple and Ireland appealed against the decision. Apple is yet to provide a statement on this report.