The UK Government has put sanctions on Chelsea owner Roman Abramovich, putting the club’s existence in jeopardy and preventing a sale
Following Russia’s invasion of Ukraine, the UK government sanctioned Chelsea owner Roman Abramovich, who is characterised as a “pro-Kremlin magnate” who has been connected with President Vladimir Putin for decades.
Explained What Are The Sanctions Imposed On Roman Abramovich By The UK Government
“Roman Arkadyevich Abramovich (hereinafter Abramovich) is a notable Russian businessman and pro-Kremlin oligarch,” according to the official UK Government report.
Abramovich is linked to a person who is or has been active in destabilising Ukraine and undermining and endangering the country’s territorial integrity, sovereignty, and independence, notably Vladimir Putin, with whom he has had a long friendship.
“Obtaining a cash gain or other tangible benefit from Putin and the Russian government has been a part of this connection.”
What Is Asset Freezing ?
Asset freezing is a legal process that stops a defendant, whether innocent or guilty (typically an apparent fraudster), from dispersing their assets outside of a court’s jurisdiction in order to avoid a prospective verdict. It is generally recognised in other common law jurisdictions, and international orders can be made. It’s been interpreted in a variety of ways as part of a court’s inherent power to prevent process violations.
UK Govt. Freezes Roman’s Assests
Chelsea’s immediate future has been put into doubt as a result of Abramovich’s assets being frozen.
The government has been granted a special licence termed “the Russia Regulations” until the end of May, thanks to the Office of Financial Sanctions Implementation. What will happen beyond that date is unknown. He is also not allowed to leave UK with no Russian vehicles allowed to arrive in the country owing to him being one of the Oligarchs in the country.
- He sees his assets frozen, a prohibition on transactions with UK individuals and businesses, a travel ban and transport sanctions imposed
- His one-time business partner Oleg Deripaska is also sanctioned with the same measures
Is Chelsea still able to function and play?
Yes, Chelsea may continue to function due to a unique sports licence that permits football activities to continue, however this is limited to football activities.
What Does This Imply For The Club’s Sale?
Abramovich claimed in a statement that he was AIMING to sell the club as soon as possible for the “better interest” of the club, as reported during the last week.
However, due to the freezing of his UK assets, this is no longer possible; unless special dispensation is given, he will not be able to make any money.
What Other Effects Does This Have?
Chelsea’s new licence solely allows them to carry out football-related activities .This has ramifications for a variety of things, with the sale of products being the most restricted.
As a result, tickets to games can no longer be sold after this date, and only season ticket holders will be allowed to attend games in the near future. This also implies that while the licence is in effect, no away fans will be able to attend games at Stamford Bridge.
The same can be true about merchandising, with none of the club’s items presently available for purchase.
The club is permitted to spend a maximum of £500,000 on game staging and a maximum of £20,000 on any transport for away games, which may be a major logistical nightmare for Champions League matches, starting with the second leg of the round of 16 tie away to Lille next week.
Catering services are still accessible at the stadium, and security may be hired for any home game as long as the cost does not exceed £500,000. The club can no longer be sold either with the current sanctions in place till May 31.
While the side can pay its team and members, the club can’t trade in players at the moment or give new deals to the team’s squad.
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