Chelsea Football Club owner, Roman Abramovich, has been sanctioned by the UK government as part of its response to Russia’s invasion on Ukraine.
He is among the seven oligarchs hit with fresh sanctions, including asset freezes and travel bans.
The list also includes billionaires: Igor Sechin and Oleg Deripaska, both considered allies of Vladimir Putin.
UK Prime Minister, Boris Johnson, announced that “there can be no safe havens” for those in support of the Russian invasion.
Based on the sanctions levelled against Mr. Abramovich, extended to the club, Chelsea FC cannot sell any more tickets for games, its merchandise shop will be closed, and it will be unable to buy or sell players on the transfer market.
According to the UK government, it would issue a special license that allows fixtures to be fulfilled, staff to be paid and existing ticket holders to attend matches.
UK Ministers came under pressure to sanction Mr. Abramovich, who revealed that he made the “difficult decision” to sell Chelsea FC earlier this month (March).
Chelsea Football Club is among the many assets frozen as part of the sanctions against Mr. Abramovich and its sale has now been stalled, according to UK authorities.
Reports suggest that the UK government would present Mr. Abramovich with a special license to sell the club, provided he can prove he would not benefit from the sale.
Mr. Abramovich, 55, is alleged to have strong ties with Russian President, Vladimir Putin, but he [Mr. Abramovich] has denied.
The government pointed out that Mr. Abramovich, who has an estimated net worth of £9.4bn, is “one of the few oligarchs from the 1990s to maintain prominence under Putin”.
A breakdown of Abramovich’s assets
Mr. Abramovich is alleged to have stakes in steel giant, Evraz and Norilsk Nickel. He sold a 73% stake in Russian oil firm, Sibneft to state-owned gas titan, Gazprom for £9.87bn in 2005.
He is believed to own a number of properties in the UK, including a 15-bedroom mansion at Kensington Palace Gardens in west London, reportedly valued at more than £150m.
Any Chelsea reassurances?
While sanctions levelled against Mr. Abramovich throw Chelsea’s future in doubt, UK Ministers are pursued to reassure the club it would not be “unnecessarily harmed”.
In a tweet, Culture Secretary, Nadine Dorries, intimated that holding those who “enabled the Putin regime to account” is the priority.
“I know this brings some uncertainty, but the government will work with the league and clubs to keep football being played while ensuring sanctions-hit those intended.”
Culture Secretary, Nadine Dorries
When asked if the inability to sell tickets and merchandise would hit Chelsea’s finances, the Culture Secretary responded that “Sanctions have consequences and that’s a fact”.
The Club’s shirt sponsor, the telecommunications company, Three, said it has put its £40m shirt deal under review.
Chelsea has enjoyed major successes since Mr. Abramovich bought the club in 2003 for £140m, winning major titles including the Champions League, the Premier League and the FA Cup.
Mr. Abramovich previously said that proceeds of the club’s sale would be donated to victims of war.
On Wednesday, March 9, 2022, there were 20 credible interested parties looking at a potential Chelsea takeover, including British businessman, Nick Candy.
The UK and its western allies keep intensifying sanctions against individuals and companies linked to President Putin since the launch of the Ukraine invasion on Thursday, February 24, 2022.
According to the UK government, Thursday’s (March 10, 2022) sanctions against “seven of Russia’s wealthiest and most influential oligarchs” were part of the UK’s “efforts to isolate Putin and those around him”.
Who else has been sanctioned?
Among those sanctioned is Oleg Deripaska, a leading industrialist who has links with British politicians.
Mr. Deripaska allegedly made billions from his stake in Russia’s aluminium industries, including EN+ Group, and has a multi-million-pound property portfolio in the UK.
Media reports also named Mr. Deripaska as the owner of a property on Belgrave Square, one of London’s most exclusive neighbourhoods.
According to the Foreign Office, Mr. Deripaska’s net worth is now an estimated £2bn, and he has been subject to US sanctions since 2018.
Unlike other Russian oligarchs, who have remained silent on the war in Ukraine, so far, Mr. Deripaska has called for “peace as soon as possible” in a tweet.
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