The proceeds from the sale of the English football club Chelsea, owned by businessman Roman Abramovich, who is subject to British sanctions, were not transferred to Ukraine due to a lawsuit related to the businessman on the island of Jersey, The Daily Telegraph reported.
Abramovich was added to the UK sanctions list on March 10, 2022 after the start of hostilities in Ukraine, after which his assets in the UK were frozen. In April of the same year, the Royal Court of Jersey, a dependency of the British Crown, issued a formal order to freeze assets associated with the businessman, totaling $7 billion (£5.3 billion).
The Jersey authorities then declared Abramovich a suspect in a criminal investigation. However, as the newspaper notes, a few months later, police officers ruled that the searches of the businessman's premises were illegal. However, in November 2022, an investigation was opened in Jersey into the origin of Abramovich's wealth. However, no charges were brought against the businessman.
The newspaper emphasizes that Abramovich tried to terminate the case through the court, citing the fact that in 2016 the Jersey authorities personally called on him to transfer his assets to the island and declared his financial sources clean. The publication called the fact that last week a court in Jersey ordered the publication of correspondence between officials of the island and the British government with representatives of Abramovich, "a victory for the businessman".
It is noted that the court in Jersey ordered the local government to reimburse the businessman's legal costs, describing the authorities' actions in deleting some of the information about past contacts with Abramovich as "extraordinary". Judge David Michael Kadin called the actions of the defendants, represented by the Jersey government, "unreasonable". The publication adds that earlier this year the businessman received permission to sue the Jersey authorities for conspiracy due to the investigation against him. Sources close to the UK government, in The Daily Telegraph admit that this issue was repeatedly raised during discussions about the transfer of funds from the sale of Chelsea to Ukraine. According to the newspaper, Abramovich's lawyers insist that the legal issue must first be resolved before further negotiations can take place on the matter.
The newspaper noted that Abramovich initially requested a ban on publishing information about this lawsuit, but changed his position after suspecting collusion between local authorities. This is the first time that details of the trial have become public.
On May 24, 2022, the English Premier League board approved the sale of Chelsea to a consortium led by businessman Todd Boely. The American businessman's group offered 4.25 billion pounds ($5.6 billion at current exchange rates) for the club. Of this, £2.5 billion was to be paid for the club itself, and another £1.75 billion was to be invested in its development.
On May 25, 2022, the British government issued a special license allowing Abramovich to sell the team he owns. A condition of the license was that the businessman would not receive any income from the club. When selling Chelsea, Abramovich stated that he would donate "all net proceeds" from the sale of Chelsea to a special charity to help victims of the conflict in Ukraine.
According to The Times, these net proceeds could reach £923 million instead of the previously estimated £2.35 billion. This is because the businessman refused to write off £1.5 billion in loans to Fordstam, the company in which the club is registered. Fordstam's financial statements, published in October and analyzed by The Times, indicate that the company owes 1.4 billion pounds to Camberley International Investments Limited, a Jersey-registered company owned by Abramovich. Therefore, more than half of the proceeds from the sale of the club will go to repay the debt. Earlier, the weekly The Mail on Sunday reported, citing sources, that the businessman insisted that the proceeds from the sale of the club go to both Ukrainians and Russians affected by the war. The publication emphasizes that the transfer of funds is clearly impossible without the appropriate permission from Abramovich.
Meanwhile, the British authorities – both the then Conservatives and the current Labour Party – believe that the money should go exclusively to Ukraine. In March, it became known that the UK government was considering legal action against Abramovich if he did not transfer the funds to Ukraine. This position was subsequently repeatedly confirmed by British cabinet officials.
Abramovich acquired Chelsea in 2003 for approximately 140 million pounds (about $233 million at the time) from Englishman Ken Bates. Under the leadership of the Russian businessman, the club won five English league titles, five Football Association Cups, three English League Cups, two Super Cups, two Champions Leagues and twice the Europa League. In 2021, Chelsea won the UEFA Super Cup and the FIFA Club World Cup.