Three Years Later: The Legacy of Roman Abramovich
A week after Russia’s invasion of Ukraine, Roman Abramovich bid adieu to Chelsea FC—and, by extension, his other illustrious assets in the UK—with a heartfelt wish. He expressed, “I hope that I will be able to visit Stamford Bridge one last time to say goodbye to all of you in person.” Almost precisely three years later, the famously reserved billionaire—often considered one of Russia’s most prominent oligarchs—remains an enigmatic figure, central to the ongoing discourse surrounding the efficacy of sanctions aimed at restricting access for those perceived as close to Russian President Vladimir Putin.
This sanctioned billionaire, labeled by the UK Government as a “pro-Kremlin oligarch,” made headlines yet again this week as ministers reiterated their commitment to advancing discussions on deploying the net proceeds from Abramovich’s sale of Chelsea FC into a charitable fund intended to aid victims of the war in Ukraine. Despite Abramovich’s pledge back in March 2022 to allocate the £2.5 billion he earned from selling the Premier League club into an independently managed fund for “all victims of the war,” the funds remain mired in a Barclays bank account, entangled in disputes between the government and administrators of the proposed foundation regarding its operational parameters.
The 58-year-old oligarch, who is known for his reluctance to engage with the media and is believed to be residing between Russia, Turkey, and Israel, has consistently contested his classification by UK and other Western authorities as a Putin ally. He has made unsuccessful attempts to have the sanctions against him lifted. Following a legal setback last year, he issued a statement asserting that he “does not have the ability” to influence the Kremlin and claimed he has not benefited from the Ukraine conflict.
Billions Left in Limbo
Campaigners expressed their bewilderment to The i Paper that the funds, which could provide essential support to Ukrainians facing their third winter of Russian aggression and hardship, continue to be in limbo. Lyra Nightingale, a legal expert with Redress—a charity focused on reparations for war victims—remarked, “It has been committed for humanitarian purposes in Ukraine, yet three years later we’re still waiting for its deployment. There is a clear lack of transparency regarding why it is stalled.” This situation exemplifies a high-profile dispute that is merely one facet of a broader spectrum of assets—from Westminster penthouses to Mayfair mansions owned by oligarchs and state-owned bank accounts—currently frozen in the UK due to an international sanctions regime aimed at crippling the Russian economy and disrupting the lavish lifestyles of Kremlin-affiliated elites.
- Sanctions Against Russia: UK trade with Russia was worth £1.9 billion last year, despite sanctions over Ukraine.
UK Trade with Russia
Figures provided to The i Paper by Redress indicate that approximately £49 billion worth of Russian assets—comprising £26 billion owned by the Russian state and £22.7 billion in property, cash, and other holdings belonging to private individuals—are currently subject to UK freezing orders. Various efforts to exert further pressure on around 1,800 individuals linked to Russia, who are under UK sanctions, have not yielded significant results. The government pledged last month to reconsider a proposal to utilize vacant properties, including a £30 million penthouse owned by Abramovich overlooking the River Thames, to accommodate Ukrainian refugees; however, previous initiatives under the Conservative government failed to materialize.
It is a peculiar aspect of the sanctions regime that while oligarchs’ assets can be frozen, British law presents significant challenges to outright confiscation. Consequently, several mansions across London and the Home Counties remain formally under Russian ownership while they sit idle. The Chelsea proceeds represent a unique case, as Abramovich voluntarily agreed to their allocation as part of an agreement with the UK Government to ensure the club’s survival.
Lord Hermer, the attorney-general, has faced criticism from some government officials for allegedly delaying plans to seize Russian assets, cautioned that such actions could risk breaching international property rights and Russia’s sovereign immunity. Meanwhile, as the UK advocates for moving towards the direct seizure of some of the estimated $320 billion (£249 billion) in Russian state funds to assist in the rebuilding of Ukraine, the sanctions landscape appears to be shifting.
US Sanctions Easing Could Pressure the UK
Behind the scenes, Britain has continued to engage in legal trade with Russia, albeit at a significantly reduced level since the Ukraine invasion in February 2022. Last year, the UK exported goods and services worth £1.4 billion to Russia, while imports were valued at £467 million. However, with Donald Trump pursuing a peace agenda with Putin, there are indications that the White House may be considering easing some of the sanctions currently imposed on Russia. Reports have emerged that the Trump administration has directed officials to compile a list of sanctions that could be lifted unilaterally as part of US engagement with the Kremlin, potentially affecting various entities and individuals, including some oligarchs.
This development presents a critical juncture in the West’s strategy to constrain Russia through economic means. On one hand, there are suggestions that the vast Russian state wealth held in the West, primarily in a Brussels-based clearing house known as Euroclear, could serve as leverage to enforce compliance with any peace agreement terms. However, there are also burgeoning discussions—albeit discreetly—regarding whether oligarchs like Abramovich and others viewed as close to the Kremlin might be permitted to discreetly liquidate their UK assets or even return to their former lives in affluent neighborhoods like Knightsbridge.
‘Londongrad is Finished’
Campaigners concur that the UK may face increasing pressure from the Trump administration to relax sanctions if it chooses to ease the economic stranglehold on Moscow; however, such actions could have dire consequences. Dr. Helen Taylor, a senior legal advisor at Spotlight on Corruption, asserts that the sanctions regime has been quietly successful in disrupting the privileged lives of those who have profited from “kleptocratic wealth” under Putin’s rule. Nonetheless, this system hinges on unity and coherence among Western nations.
Dr. Taylor stated, “It would be a grave error if the US, UK, and allies lifted sanctions—be they on oligarchs or central banks—resulting in a de facto free pass for Putin. If the US retracts sanctions, immense pressure will mount on the UK and European Union to follow suit. Even if they resist, the impact of those sanctions will be significantly weakened. The fundamental lesson learned over the past three years is that the efficacy of sanctions arises from coordinated efforts and simultaneous actions across all fronts.”
Despite the looming possibility of a softened sanctions regime, Abramovich’s hopes of fulfilling his desire for one last visit to Stamford Bridge appear increasingly unattainable. A separate legal source based in London, who has previously engaged with affluent Russians, remarked, “Londongrad is finished. That reality has been learned the hard way. It is highly likely that you won’t hear much Russian spoken in the Chelsea boardroom, or anywhere else, anytime soon.”
Frustrations Over Frozen Assets
The Chelsea billions illuminate the complexities involved in deploying funds surrendered or seized for the benefit of Ukrainian victims. Almost a year ago, then Foreign Secretary Lord Cameron expressed to Parliament his frustration over the inability to actualize Abramovich’s vision for a “foundation for all the victims of the war in Ukraine.” The sticking point appears to be a desire from those establishing the foundation to allocate part of the funds to humanitarian efforts outside of Ukraine, such as assisting African nations affected by fluctuating grain prices due to the conflict. The UK Government, which must grant a license for the foundation’s establishment, maintains that all funds must be directed solely to aid efforts within Ukraine.
The Foreign, Commonwealth, and Development Office did not respond to inquiries about when it last engaged directly with Abramovich or his representatives regarding the fund. A spokesperson commented, “This Government is working diligently to ensure the proceeds from the sale of Chelsea FC reach humanitarian causes in Ukraine as swiftly as possible… UK officials continue to converse with Mr. Abramovich’s representatives, experts, and international partners, and we are committed to intensifying our efforts to reach a resolution.” Neither the parties responsible for establishing the foundation nor Abramovich’s representatives responded to questions regarding the impasse surrounding the charity’s formation.
