By Ben Kerrigan-
Roman Abramovich was one of seven Russians hit with a full asset freeze and travel ban by the UK on Thursday, completing a list of Oligarchs to be rounded up in one of the most aggressive crackdowns on oligarchs in Russia, since the Kremlin invaded Ukraine.
Abramovich, who was planning to sell Chelsea club, has had his assets frozen as part of the crack against Russian Oligarch shot to prominence in the UK after buying Premier League club Chelsea in 2003, is accused by the government of having benefited financially and otherwise for decades from close links to Russian president Vladimir Putin.
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The British government unveiled measures against Oleg Deripaska, the founder of London-listed metals group EN+, and Igor Sechin, chief executive of Rosneft and one of Putin’s closest confidants.
“Today’s sanctions show once again that oligarchs and kleptocrats have no place in our economy or society,” said UK foreign secretary Liz Truss. “With their close links to Putin, they are complicit in his aggression.”
The UK government said: “Abramovich remains of interest to HMG [Her Majesty’s Government] due to his links to the Russian state and his public association with corrupt activity and practices … An example of this is Abramovich admitting in court proceedings that he paid for political influence.”
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The move plunged Chelsea, whose success Abramovich has bankrolled over the past two decades, into chaos and imperils his ability to sell the club. Facing the threat of sanctions, the Russian-Israeli billionaire put Chelsea up for sale last week, drawing interest from tycoons around the world.
Alongside Abramovich and Deripaska, the UK Treasury’s Office of Financial Sanctions Implementation (OFSI) also targeted Andrei Kostin, chair of VTB Bank, Alexei Miller, chief executive of energy company Gazprom, Nikolai Tokarev, president of the Russian state-owned pipeline company Transneft, and Dmitri Lebedev, chair of Bank Rossiya.
Abramovich, who made his fortune after the tumultuous collapse of the Soviet Union in the 1990s as Russia privatised its oil industry, has in recent weeks put properties in Kensington and Chelsea up for sale. Pointing to estimates, the UK said the tycoon is worth £9.4bn.
UK officials confirmed that the freeze of Abramovich’s assets has automatic implications on the sale of Chelsea cannot go forward , but added that the government could consider granting a new licence that would permit a disposal if Abramovich was able to demonstrate that he would not receive any of the proceeds.
Under the sanctions imposed, Chelsea will be allowed to make payments “essential to the continuation of the operation of the club”, can continue to receive broadcast income and prize money, but cannot sell new tickets.
Fordstam, the holding company through which Abramovich owns Chelsea, owes the billionaire £1.5bn. A spokesperson for Abramovich, who also holds Israeli and Portuguese citizenship, declined to comment to the sanctions.
The UK also accused Abramovich of being involved in destabilising and threatening Ukraine via Evraz, the London-listed steel group in which he is the largest shareholder.
Evraz “has been involved in providing financial services, or making available funds, economic resources, goods or technology that could contribute to destabilising Ukraine”, the OFSI said, adding that this included “potentially supplying steel to the Russian military which may have been used in the production of tanks”.
Shares in Evraz, which have continued to trade since Putin ordered troops into Ukraine two weeks ago, were suspended on Thursday. In a statement, Evraz denied the accusations, saying it only supplies steel to the infrastructure and construction sectors.
Privileged Access To Putin
A court judgment by Mrs Justice Gloster stated that it was Abramovich’s own case that the political lobbying activities of his former oligarch partner, Boris Berezovsky, providing him with political krysha (protection) were: “Inherently corrupt, and that likewise, the deal between the two men, whereby Mr Abramovich agreed to pay Mr Berezovsky for his krysha services, was also corrupt.”
The judgment also noted that Abramovich had “very good relations” with Putin, including “privileged access” to the Russian president.
How the money was made was known and well-reported by 2003 when Abramovich bought Chelsea. The club’s successes have been funded with his oligarch money. Players were bought in waves as never before, and he bankrolled transfer fees and wages the club could otherwise not have paid. In that way he bought the Premier League, the Champions League and, just days before Putin invaded Ukraine, the Club World Cup.
Britain has sanctioned 18 Russian oligarchs since Putin invaded Ukraine — fewer than the EU or the US.
Parliament is expected to fast-track a long-awaited economic crime bill on Monday, which Prime Minister Boris Johnson has insisted will make it easier for the government to go “harder and faster” in placing individuals linked to Putin under sanctions.
Chelsea are facing Norwich in the Premier League tonight following a day of drama and uncertainty off the field, while the women’s team play West Ham in the Women’s Super League.
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