UK Announces Severe Sanctions on Roman Abramovich Including Brutal Limitations for Chelsea FC

The U.K. government announced sanctions and seized assets of seven known Russian oligarchs Thursday, including the owner of Chelsea F.C. owner Roman Abramovich.

“There can be no safe havens for those who have supported Putin’s vicious assault on Ukraine,” U.K. prime minister Boris Johnson said.

The Chelsea owner is perhaps the most visible Russian oligarch, at least for those who follow the Premier League, as he has poured upwards of £ 1.5 Billion in the club in the form of personal loans. This has allowed the side to not only compete with other top sides — some of which also come with questionable funding repute — but thrive in the manner of winning scads of trophies along the way, and perhaps flouting any “financial fair play” guidelines.

Abramovich is a majority shareholder of the Russian steel manufacturer Evraz, which has sold massive quantities of materials to the Russian military in advance of its recent invasion of Ukraine. Or as the U.K. government sees it:

Evraz PLC is or has been involved in providing financial

services, or making available funds, economic resources, goods or technology that could contribute to destabilising Ukraine or undermining or threatening the territorial integrity, sovereignty or independence of Ukraine – which includes potentially supplying steel to the Russian military which may have been used in the production of tanks.

Abramovich had recently announced that he was shifting stewardship of Chelsea club to trustees, which was primarily derided as a naked P.R. play as he would maintain ownership and, ostensibly, profits. In the following week, however, Abramovich announced a planned sale of the club, claiming he would forego a profit to donate all proceeds to victims of his country’s invasion of Ukraine. He would reportedly forego the massive loan to the club, which gave them an enormous competitive advantage.

The sanctions announced Thursday put that sale on hold, and include some rather draconian and immediate limitations on the club. Chelsea cannot sell any merchandise or tickets for upcoming games, though the roughly 25,000 season ticket holders will still be allowed to attend matches. No new contracts or transfers for new players may be completed while the club is under government control, and the travel budget for the club per game is reduced to a paltry £20,000 per match.

The only worse outcome for the club would be the government seized Chelsea as an asset taking over operational control. This falls short of that.

These sanctions immediately put the competitive future of Chelsea F.C. in significant limbo, as

a planned rushed sale of the club is now going to proceed at a more glacial pace for which government agencies are infamous. While that gets sorted, the club cannot negotiate any new contracts for key players, like three of their top defenders who are on expiring contracts, nor can they bring in any new talent.

Chelsea’s shirt sponsor Three has confirmed to @CBSSportsGolazo that they are reviewing their agreement with the club, which is understood to expire in 2023. At the time of its agreement, it was said to be worth around £40m a year.

Read the complete statement from the U.K. Government on Abramovich below:

Name 6: ABRAMOVICH 1: ROMAN 2: ARKADYEVICH 3: n/a 4: n/a 5: n/a. Name (non-Latin script): Роман Аркадьевич АБРАМОВИЧDOB: 24/10/1966. POB: Saratov, Russia a.k.a: ABRAMOVICH, RomanNationality: (1) Russia (2) Israel (3) PortugalPassport Number: (1) CB982788 (2) 24132276Passport Details: (1) Portugal (2) IsraelPosition: (1) Businessman – Owner of Chelsea Football Club (2) Stakeholder in Evraz PLC and Norilsk NickelOther Information: (UK Sanctions List Ref):RUS0270 (UK Statement of Reasons):Roman Arkadyevich ABRAMOVICH (hereafter ABRAMOVICH) is a prominent Russian businessman and pro-Kremlin oligarch. ABRAMOVICH is associated with a person who is or has been involved in destabilising Ukraine and undermining and threatening the territorial integrity, sovereignty and independence of Ukraine, namely Vladimir Putin, with whom ABRAMOVICH has had a close relationship for decades. This association has included obtaining a financial benefit or other material benefit from

Putin and the Government of Russia. This includes tax breaks received by companies linked to ABRAMOVICH, buying and selling shares from and to the state at favourable rates, and the contracts received in the run up to the FIFA 2018 World Cup.Therefore, ABRAMOVICH has received preferential treatment and concessions fromPutin and the Government of Russia. ABRAMOVICH is also associated with a person who is or has been involved in obtaining a benefit fromor supporting the Government of Russia, namely: former First Deputy Prime Minister, and current Chairman of the Management Board for VEB, Igor Shuvalov; former General Director of Gazprom Investment Holdings, Alisher Usmanov, both of whomwere sanctioned on 3 March 2022 for being involved persons in obtaining a benefit fromor supporting the Russian government through carrying on business in a sector of strategic significance to the Russian government. ABRAMOVICH is associated with these individuals through close business relationships and mutual assistance, including ABRAMOVICH financing Shuvalov’s trust and the subsequent loans from Shuvalov to enable Usmanov’s purchase of a British mill. Furthermore, ABRAMOVICH is or has been involved in destabilising Ukraine and undermining and threatening the territorial integrity, sovereignty and independence of Ukraine, via Evraz PLC, a steel manufacturing and mining company in which ABRAMOVICH has a significant shareholding and over which ABRAMOVICH exercises effective control.Evraz PLC is or has been involved in providing financial services, or making available funds, economic resources, goods or technology that could contribute to destabilising Ukraine or undermining or

threatening the territorial integrity, sovereignty or independence of Ukraine – which includes potentially supplying steel to the Russian military which may have been used in the production of tanks. ABRAMOVICH exercises effective control of Evraz PLC given his significant shareholding and the shareholdings of his close associates who it is reasonable to expect ABRAMOVICH could direct through his close ties with Abramov and Shvidler, as well as his power to nominate directors of the board. ABRAMOVICH is or has been involved in obtaining a benefit from or supporting the Government of Russia, as ABRAMOVICH and Evraz PLC carry on business in sectors of strategic significance to the Government of Russia – namely the construction, defence and extractive sectors.(Gender):Male Listed on: 10/03/2022 UK Sanctions List Date Designated: 10/03/2022 Last Updated: 10/03/2022 Group ID: 14212